What makes a good buy-to-let property overseas?

What makes a good buy-to-let property overseas?

Many of us dream of owning a second home abroad. It becomes our personal getaway, where we can take time out in idyllic surroundings.

But, while the lifestyle aspect plays an important role when deciding to buy an overseas property, the biggest reason often comes down to money. Letting out a property can bring both significant and long term financial rewards.

It’s therefore no surprise that more and more people in the UK are turning to overseas property investment and we’ll continue to see a rise in 2016. Investing in a property abroad can provide buyers with a steady rental income as well as a base for regular holidays. But what makes a good buy-to-let overseas property? Here are five things to consider before making a purchase.

Location

Find a property that holidaymakers will be able to enjoy at any time of the year – and avoid one that is dependent on specific seasons such as a ski chalet in the winter. Most people will follow the sun, so buy a property in a destination that offers warmth and sunshine. Consider traditional holiday home markets like Spain and France, but also look further afield to areas like Cape Verde. Look at accessibility too. Check which airlines fly to your preferred location and how easy it is to get around once holidaymakers arrive. Safety and security is becoming more important too, so check the government’s travel advice.

Type of property

Once you have found a location, research the types of properties that visitors to that area will want to stay in (and what they can afford to stay in). Is there a demand for individual villas and apartments or hotel rooms and suites on a resort? Investing in a property on a hotel resort, for example, could offer greater rental returns, especially if the resort is run and marketed by a well-known tour operator. Weigh up all options and keep your target market in mind. Families might prefer staying on an all-inclusive resort that offers a level of service, as opposed to a self-catered apartment.


Activities

While some holidaymakers wish for a fly-and-flop destination, many want a place that offers a wide range of activities and classes. Again, this comes back to your target market. Those looking to relax will enjoy stunning beaches, health spas and a la carte restaurants but, if you want to purchase a property suited to families, look for one that offers access to daily entertainment, a buffet restaurant and a child-friendly swimming pool. For the more active types, consider destinations that offer resorts equipped with a gym as well as those that run watersports activities such as kite surfing and scuba diving. And for those seeking a romantic holiday or a honeymoon destination, invest in a five-star property that is catered for adults only.

Managed scheme

As with any buy-to-let property, signing up to a management scheme will increase an investor’s chances of success. You’ll be supported on all aspects of running an overseas property from advance holiday bookings through to property maintenance – highly recommended if you are living and working in the UK. If you buy a property on a resort that is run by a well-known operator, consider signing up to its hotel management scheme. The resort is likely to be marketed on a global scale through travel companies, agents and tour operators, meaning you can expect ongoing rental income.  

The future

Tourism plays a major role in driving holidaymakers to overseas property and, for as long as people continue to travel abroad, the property market will continue to grow. Therefore, regularly look at tourism figures for your preferred destination. Is the number of visitors growing year on year? Also research what the local government is doing to boost tourism. Key infrastructure improvements including supporting foreign investment and leisure development, as well as modernising the utilities, telecommunications and transport links, are clear signs of strong investment.

Finally, choose an overseas property that you are comfortable with buying. Buy-to-lets are no longer only accessible to the new and experienced, with new investors able to take advantage of various payment options. You can purchase a property outright or, if you have fewer funds to release, take advantage of fractional investments. Whichever route you choose to follow, high rental yields is the most important factor behind a decision to purchase an overseas property and, with developers like The Resort Group, you are guaranteed a minimum rental yield.

For more information, visit www.theresortgroupplc.com

Join our mailing list:

Leave a comment



Latest Comments

ChristinaReedUK
ChristinaReedUK 20 Jun 2016

I don't understand why it's always a war between the two sides. Either, way the landlord is probably keeping a detailed inventory and will see the changes you've made. I just don't understand why there...

view article
NathanGreen
NathanGreen 16 Jun 2016

Seeing that the tenants are quite satisfied with their landlords and the properties is indeed great. I wonder, though, what is the situation in London alone? The tenants face sky-high rent levels in the...

view article
AndiMur
AndiMur 15 Jun 2016

TheGuardian published the same forecast. But on the other hand, professional brokers express different opinions. According totranio.com, an exit from the EU would not affect the demand/supply imbalance...

view article
Gary Holmes
Gary Holmes 14 Jun 2016

Having a professionally completed inventory at check-in and check-out is clearly (to me at least) of minor value. Tenants make un-authorised modifications and/or walk off with items that belong to the

view article
Violet Gibson
Violet Gibson 14 Jun 2016

Cautious people think buying off-plan is reckless, but over the past few years investors have literally made fortunes.Pre-release prices have obvious benefits for the developer, who gets instant finance...

view article
Kate Windleton
Kate Windleton 14 Jun 2016

An interesting research indeed. I guess that is in complete contrast with the United States where people often move from one coast to another. It will be interesting to hear the trends for people moving...

view article
NathanGreen
NathanGreen 14 Jun 2016

I think it all depends on the market conditions and how well your company is doing. You will agree that you can't demand more when you're killing yourself just to hang in there. Sometimes you need all

view article
ChristinaReedUK
ChristinaReedUK 13 Jun 2016

What does "detecting a bad vibe" mean actually. I've had certain vibes like these and yet have always found a reason , if there's any, why I don't like a certain property. The property maintenance might...

view article
keybanks estates
keybanks estates 08 Jun 2016

Great News for first time buyers, about time two!

view article
NathanGreen
NathanGreen 07 Jun 2016

I agree with #6 - you should maintain your garden according to the target buyer. One thing is universal, though - cleanliness and order. Having the yard clutter-free and clean will help people who do enjoy...

view article
NathanGreen
NathanGreen 06 Jun 2016

I will always say that London is overrated. Sure it is the capital, but it's too stuffed in there. It's more of a business city to me.

view article
Paul
Paul 25 May 2016

Estate agents are pathetic when it comes to fees. They have this 'I had to do it at 1% because that's what the others were quoting' mentality. We are the most expensive agents in our area, charging double...

view article

Related stories

More articles from Overseas