Keep The Door Open
You're all excited; you're on the plane and jetting off to your new holiday home abroad. All you need to do now is remember the French patisserie where, over a latte, you met that estate agent whose sister has the keys to your brand new villa that has not yet been built.
All of the evidence shows that more and more Brits are in the process of buying or are planning to buy a second property abroad.
But have they really thought their move through? And will they bitterly regret it a few more months or years down the line?
Alas, many 'second homers' learn all too late that they have made a huge mistake.
They discover that their dream location is 'over-cultured,' the resident builder is not fluent in architectural English and the locals aren't as friendly as they used to be when you were just visiting on holiday.
In short, anyone thinking of buying 100% of a property abroad should tread very carefully and consider owning a proportion of one or perhaps more properties around the world using fractional ownership.
Here are a few golden rules for you to apply which should help you decide on the pros and cons of full ownership and fractional ownership before heading for those golden sands.
Consider your life stage:
Does the responsibility of buying 100% of an overseas property make sense at your stage in life?
Do you think the traditional way of financing a second property suits your lifestyle?
Can you afford to run another home alongside your own property with, like most of us, the burden of a mortgage and the responsibility of owning 100% of a property overseas?
Are you the sort of person that loves to holiday in the same place year in, year out?
Don't burn your bridges:
A "no-going-back" philosophy may give you determination to make the purchase work out, but can you live with the fact you are totally responsible for financing your purchase and its upkeep when you are not there?
Learn the language:
All too often ignored. That gorgeous rustic farmhouse may seem ideal, but you will probably want to be able to communicate with your neighbours who perhaps won't take kindly to somebody who expects them to speak English.
Do your maths:
The pound is strong at the moment. Your new property seems a great deal now, but how easy will it be to sell on? Do you know the tax laws? And have you got a viable exit strategy?
Why are you buying?
If it is for an investment, are you sure that the property prices in your desired location will rise 20% a year?
Do you need to rent out the property during the year to cover mortgage payments?
If so, how are you going to market the property and can you trust the local estate agents in the country where you have purchased?
Do in-depth research:
Make sure you know all there is to know about where you are buying; are you nervous about your potential purchase?
Attitude to risk:
Are you happy to be 100% 'exposed' to your property if the overseas market crashes?
So what are the alternatives?
If your answers to these questions have raised doubts, then fractional ownership may be the easier and simpler way for you to vary your lifestyle cost-effectively.
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Transumerism- the luxury lifestyle revolution.
All My Possessions
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What is Fractional Ownership?
Our Top 10 Favourite Fractional Life Deals
Fractional Business Sense
Aircraft & Jets:
Can't afford that jet? Rent it
How Private Aviation Works
Joining the Jet Set
Art:
Fractional art donations prove charity starts at home
Boats & Yachts:
Fractionalize This
Classic Cars:
Fractional Life hits Le Mans
You've Always Loved Cars?
Why not rent?
Getting the most out of your fractional car club experience
Classic Car Club Feature
Corporate Hospitality:
So Long to the Suite Life
Destination Clubs:
Bear Mountain Resort - A View from Paradise
Fractional Ownership: Why the Boomers will change second home ownership in the US
I'd Rather Be Safe with a Fractional Residence...
Destination & Private Residence Clubs
Middle East Leisure Real Estate Market Booming
Handbags:
Swap a Fendi for a Furla
Helicopters:
Flying without Wings
Luxury Vehicles:
Denver RV show ready to roll
Properties:
Saving Homes, Homeowners and Banks Through Fractional Ownership?...
Fractional Ownership: Why the Boomers will change second home ownership in the US
The Benefits of Fractional Ownership in Private Residence Clubs
Why Fractional Property?
Keep The Door Open
Fractional Ownership? We'll have a piece
Middle East Leisure Real Estate Market Booming
Racehorses:
Running Down a Dream
A Horse by The Name of Fractional Life
Supercars:
Ascari Racing Festival Weekend
Fractional Life hits Le Mans
So Why Not Buy?
Supercars- The cars of 2006/7
Let's Take The Lamborghini
Vineyards & Wine:
Fractional Vineyards and Wine
