Owning a villa or a house in the coastal regions is a dream cherished by many… And if one takes the following points into consideration, this project might become an interesting opportunity of investment !
An ultimate reward for some and a promising investment for others. Owning a secondary residence can be a safe bet when following the right steps. For instance, buying an existing property, even if one considers selling it afterwards, can put one’s mind to rest when it comes to construction issues. It is important however to take some pitfalls into account.
How much does it cost?
While some of the costs are clear-cut, others are less obvious. To help you better understand, here is a list of what needs to be taken into account:
- The price of the property itself (which varies according to its state and location).
- The notary and registration fees (or even real estate agency fees).
- Renovation costs (do not hesitate to seek advice from a professional to have a realistic assessment of the work to be done and the relative costs).
- Monthly charges and maintenance fees in your absence.
Renovations: necessity v/s superfluity
One can easily be tempted to simply renovate in order to design his/her dream house and bring an added value to the property (for instance by adding a swimming pool or a gazebo). Take the time to think thoroughly, and identify what is really necessary and what is less important and superfluous. Consider starting from the construction works for the main structure beforehand and then adding the little extras. In fact, adding too many things will increase the costs and might lead you to dry your savings (especially for unforeseen events). This might even have a negative impact on your re-sale!
Rental… yes or no?
Are you considering the rental of your secondary residence? This is one of the options to be explored for long-term profitability. You shall then consider either putting your property on rent on your own or seeking help from a rental management agency.