Buy to Let Property Abroad

As the European Union continues to expand and buying property abroad becomes even easier for British citizens throughout the EU, buy-to-let as an investment strategy is starting to capture the attention of thousands.  From Spain and Portugal to Bulgaria and beyond, the attraction of buying property abroad remains high.  When buying property with an eye toward letting for financial returns is the plan, there are some things investors need to think about to help them boost their chances of earning a solid income.

If you’re considering buy to let abroad, read on.  There are some excellent tips worth considering that can help increase chances of good returns.  Keep in mind though that there are no guarantees when it comes to real estate.  If crystal balls worked, we’d all be wealthy investors!

Some of the top things to consider when exploring buy-to-let potential abroad include: -

Market trends. Since you’re interested in buy-to-let, look at your country of choice, the region in question and even the specific city’s average rental yields. Look at the figures for the type of rentals you’re interested in. Rental yields for year-round properties, for example, might be different than those experienced by holiday property buyers.

Type of rental desired. Year-round rentals offer a steady stream of income to some, but others are simply drawn to the holidaymaking market. Whilst the latter can offer a limited window for annual returns, the prices holiday rentals command tend to be a great deal higher. Do decide which fits personal plans the best before seeking out properties and bargains in a foreign land. Rentals that appeal to holidaymakers very likely will not be in the same places that locals will want to reside.

Taxes.  This can be a huge consideration in choosing a place to buy abroad.  Even if taxes are high, if the right pricing strategy for a rental is used, profits can still be enjoyed.  Still, lower taxes are a bonus that shouldn’t be overlooked.

Government stability.  This is a very important consideration when looking to buy property abroad for any reason.  A good investment can turn sour quickly if government instability is present.  On the whole, most of the biggest investment hotspots – especially in the EU – remain quite stable.

Whilst the above considerations apply to any buy-to-let situation, investors seeking to cater to the holidaymaking market should consider a few other factors in selecting their properties.  These include: -

Tourism trends.  Look for areas that already have strong tourism markets or those that are growing.  Quite a few parts of Europe, for example, are surging with growth.  Study where the holidaymakers go and new areas that might be of interest to them before selecting a location to buy in.

Pricing factors.  Pricing on year-round rentals tends to follow basic market trends with no other extra considerations beyond maintenance and taxes.  For holiday rentals however, buyers also need to consider things such as cable television, water, electric, cleaning and management services and even security.  These costs fall on the owner, not the tenant.  Make sure to build them into the lease price with enough left to actually enjoy a profit!

Buying property abroad to let for a steady income is an excellent way to make money.  There are no guarantees though.  It pays to carefully examine the options, look at trends and make certain prices are reasonable for renters whilst still allowing for personal profit.  When in doubt, seek out advice from other investors, management companies and even legal and real estate professionals in the country of choice and back at home.