Is now the time to purchase a holiday home abroad?

[IsleOfMan]

Interesting that the thread was started as a result in the reduction of Prize Bonds payouts. It shows people are again thinking of making a profit and suddenly the idea of buying a non Irish holiday home kicks in again.

No. It was more to do with the fact that I have €220k sitting there doing nothing when I could at least have a second home abroad and enjoying it. I would not be interested in having it "let out" either. It would be somewhere to go at the drop of a hat.

Just as a matter of interest. What are the annual charges, utilities, local taxes etc in maintaining a two bed apartment or townhouse if NOT letting it out? I assume there would be no management fees if a townhouse was purchased on a regular street.

 

[Palerider]

I'm interested in this as a direct result of the imminent fall in my return from pb's.

I don't think it makes any sense to purchase overseas and not have the ability to at least cover costs so for me it must be well located, easy to access with all amenities, in short a condo.

 

[galway_blow_in]

think if i was wealthy enough to own an overseas home , id chose portugal , no idea how much property costs but i imagine the cost of living is slightly lower than in neighbouring spain , visited lisbon in 2014 for five days and found it very cheap , loved that city

 

[noproblem]

I'm guessing there's annual management fees, local property tax, water fees, electricity bills, insurance, etc. When property in hot countries is not lived in there's damage like dampness, air conditioning upkeep, leaks, possible vandalism, etc. You would be well advised to have a person to repair whatever might go wrong when you're not there and they cost a few bob. Have all this in place and when you turn up after a long absence you will hopefully be going into a property that won't stink or smell and won't have any undesireables, eg, insects, flies, cockroaches in situ. Fridge, TV, beds, washing machines, balconies, etc, would need to be kept in check as well. Anyway, enjoy.

 

[Firefly]

Not worth the hassle IMO.

OP..for 220k you could have holidays-of-a-lifetime for the next 22 years with zero hassle. Think of all the places you could go to!

 

[Gordon Gekko]

With nothing to show at the end of it!

My own aim would have been to buy something decent in Portugal, but now it would be to buy something more modest and do some AirBnB stuff around the world.

 

[Laramie]

With the possibility of the government introducing Capital Gains Tax on the sale of the family home it might make sense to sell up now, purchase a home abroad and rent out a small property here?

 

[Gordon Gekko]

With the possibility of the government introducing Capital Gains Tax on the sale of the family home it might make sense to sell up now, purchase a home abroad and rent out a small property here?

Has anyone a link to this story?

I heard it mentioned on Newstalk this morning.

 

[Cervelo]

With the possibility of the government introducing Capital Gains Tax on the sale of the family home it might make sense to sell up now, purchase a home abroad and rent out a small property here?

afaik this is what happens in Spain, If you sell the family home you pay tax unless you buy another home and I think they give you nine months to complete the transaction

 

[IsleOfMan]

afaik this is what happens in Spain, If you sell the family home you pay tax unless you buy another home and I think they give you nine months to complete the transaction

Well you can bet the bit about "unless you buy another home" would be left out by the Irish Government. Every situation would be taxed.

 

[mtk]

With the possibility of the government introducing Capital Gains Tax on the sale of the family home it might make sense to sell up now, purchase a home abroad and rent out a small property here?

wow that would kill any flow of properties onto market ,

cannot see them doing it for a different reason - doing it would be a huge vote loser

 

[Early Riser]

wow that would kill any flow of properties onto market ,

cannot see them doing it for a different reason - doing it would be a huge vote loser

I can't see it happening either. But what might be the effect on the market if they gave a lead in time - say 3 years?

 

[IsleOfMan]

Or...This is the scare tactic to get everyone talking about it while they increase property taxes. Weren't you lucky type of thing.

Just like €1 on a packet of cigarettes and every smoker says Phew! when they "only" go up by 50c. in the budget.

 

[mtk]

I can't see it happening either. But what might be the effect on the market if they gave a lead in time - say 3 years?

Interesting yes I guess it would accelerate flow of property in those 3 years .....but still kill government politically

 

[jjm]

[QUOTE="mtk, .but still kill government politically[/QUOTE]
There must be a % of the Irish people who will vote for Good Government ,Who represents the people who paid there water charges there must be at least 30 to 40% of the Irish people who are looking for Leadership in a Government who will Do what is best for the Country ,

 

[Firefly]

Or...This is the scare tactic to get everyone talking about it while they increase property taxes. Weren't you lucky type of thing.

Just like €1 on a packet of cigarettes and every smoker says Phew! when they "only" go up by 50c. in the budget.

Well, smokers always cough up at the budget don't they

 

[noproblem]

[QUOTE="mtk, .but still kill government politically

There must be a % of the Irish people who will vote for Good Government ,Who represents the people who paid there water charges there must be at least 30 to 40% of the Irish people who are looking for Leadership in a Government who will Do what is best for the Country ,[/QUOTE]

The supposed leader we have was not elected and his own people overwhelmingly rejected him. Still, not to worry, "HE" thinks he's the chosen one and sure that's all that matters anymore.

 

[jjm]

There must be a % of the Irish people who will vote for Good Government ,Who represents the people who paid there water charges there must be at least 30 to 40% of the Irish people who are looking for Leadership in a Government who will Do what is best for the Country ,

The supposed leader we have was not elected and his own people overwhelmingly rejected him. Still, not to worry, "HE" thinks he's the chosen one and sure that's all that matters anymore.[/QUOTE]

The sad part is most of the people who elected him have more in common with Paul Murphy and people before profit he has thrown in the towel and the grass roots supporters in FG and the 60% people from other parties who supported and respect good Government will be getting there support back in the post before the end of year (some leadership )FG should have stuck to there guns and questioned why FF and SF did not formed a government along with the other TDs who wanted to get rid of water charges and do so,

 

[Palerider]

Algarve is a lot more expensive than I imagined fora 2 bed in a good community with pool, budget of at least €200k required..

 

[Leper]

Buying holiday property in Spain,Portugal, etc is much like buying in Ireland.

Rule No. 1:- Ensure you can re-sell if necessary. Forget the bargain repossessions, those bargains for €50K, the apartments being sold on Sundays in Irish hotels etc. You're talking minimum €150K.

Rule No. 2:- Know the local taxes, maintenance, electricity, cleaning, advertising, insurance, water, bin, public lighting, letting agents, community fees. In parts of Spain you are even taxed on your own underground parking space. So you don't use the waste collection. Too bad, you'll have to pay the yearly charge anyway. "But, that couldn't be Lep" - Yes, it is. By the way be prepared to pay €30 per month for banking facilities.

Rule No. 3:- Know your rental market. No problem renting during July/August. June is easy enough too along with September. But, October - May inclusive is the challenge. There are no too many holidaying in those eight months. "But, Lep, there's Easter and the mid-terms!" Yeah! and many teachers, etc have places abroad of their own in Spain. What's left? Retired Brits and long may they last. Monthly off season rentals run at €600 approx.
A few lean years and you are happy to rent very cheaply. An empty apartment costs. The money is in repeat renters.

Rule No. 4:- Irrespective of what you read above most holiday home owners don't want to lose on the deal. Newsflash! It's not all gain and the money seldom rolls one way. Be prepared to see your property devalue by about 30% on any year on year. I have loads of neighbours in Spain from Ireland who wanted just a holiday home for the family. Strange though, they're always in contact for my excess renters.

Rule No. 5:- Much of your money gets tied up, so your life savings and another mortgage commitment ensure your cash flow is not as good as it was.

Rule No. 6:- Most of what you hear on Holiday Homes in the Sun type of Property Sales programmes is rubbish. Television presenters are not known for letting truth get in the way of what they can earn. I'm including Irish presenters here.

Rule No. 7:- This should be Rule No. 1. Employ a solicitor to act solely for you. Don't share with the vendor's or estate agent solicitor.

Rule No. 8:- Don't think your fellow golf club members will rent from you. Neither will your friends. Don't bank on promises.

Rule No. 9:- Live in the resort/village/town for at least a month in the off season before you buy.

Rule No. 10:- Sean the Spaniard probably will never be able to afford to purchase an apartment. Don't think the local Spanish politicians will represent your whinges anywhere.

If you don't follow all of the rules above and buy a holiday home abroad, sooner or later you'll bear the brunt. You have been warned.