Home Abroad Help.

littlejay

id be so greatfull if.
anyone out there can give me any info on buying abroad..in portugal.
theres a 4 bed house for 60 grand just outside the algarve.
the area is good to rent according to remax. it will pay the morgage .
its a full morgage because i can get a loan on a home improvment etc.
is there any snags i may not have noticed
my brother in law has 2 homes in spain . but hes very coy and dosnt reveal a lot of info to me..
i know a lot of reps tell you what you want to hear and all. but it looks solid.
basicly the plan is my wife has sorisoss of the skin . and needs the heat.
and in say 15 years we can have a home in the sun that costs us nothing.....along them lines.

any help would be greatfull.

RainyDay

Don't rush into this. Believe nothing that the agent tells you - he is only after his commission. Do your own independent research. Things to consider would be;

- Legal issues - Will you have independent English-speaking in-country legal advice? What about inheritance rights? Could you risk losing a chunk of your property to local authorities as has happened some investors in Spain?
- Tax issues - What is the tax impact of your rental income? What is the capital gains tax impact if/when you come to sell the property? Are their local authority taxes/charges that will apply
- Rental business: How many weeks of the year do you expect to get tenants? How will you market the property? How much will that cost you? Who will manage the property (cleaning, maintanance) and how much will this cost you? Can you handle a bad year with no tenants for whatever reason?
- Accessibility - Are their regular flights to the area all year round?

Victor

RainyDay wrote:

Are their local authority taxes/charges that will apply

Something like 5% of the value of the property per year. Thats a big chunk of your rental income gone.