Buying a second home abroad that you can enjoy for years: many people dream of it. How do you tackle it so that it goes smoothly and you don’t end up with a financial hangover? Follow the 7 steps below!

1. Search for a dream place

You can only enjoy your second residence if it is located in a place you love and feel at home. Immerse yourself first in the area or region where you want to live and only then in the property itself. You may buy the most beautiful house in the world, but if it is in a town or city where you do not feel comfortable, you may not be happy there. Preferably get advice from someone who knows the country and region well, such as a real estate agent.

2. What do I want and what do I like to do?

To find the ideal location for your vacation home, ask yourself what you want and what makes you happy. Are you looking for peace and quiet or hustle and bustle, do you like to be active and do lots of sports or can it be nice and slow for you? Ask yourself what your day looks like in your dream place. The better you know what you want, the better a real estate agent will know which villages and towns to visit with you.

3. Map out all costs

It is important to list all the costs of the second home in advance to avoid financial surprises. A house is more than the selling price alone. A number of costs (lawyer, notary, VAT, transfer costs) are added to arrive at the final purchase price. Keep in mind annual costs such as taxes, common charges and insurance. If you want to take out a loan, it is a good idea to check in advance with the bank how much you can borrow.

4. Where can I buy what with my budget?

In all countries, there are price differences by region. In Spain, for example, there is a difference between the costas in terms of land prices. And the further you go from the coast, the cheaper the land becomes. Again, it is good to get the assistance of an expert such as a real estate agent. Tell them what your budget is so they can look for the ideal location for your vacation home.

5. House hunt on the spot

Once you know what you expect from your second home and what budget you have, it is time to start looking at houses locally. The most efficient way to do this is to let a local real estate agent accompany you. Someone who knows the area inside out can more easily guide you to your dream spot. Allow enough time for this, at least three days.

6. Dream house found: draw up reservation agreement

Once you have found a vacation home, a reservation agreement is drawn up to take the property off the market. You pay a reservation fee of an average of 3,000 to 6,000 €. Tip: try to negotiate the amount of the reservation fee down. This usually works. Usually the property remains reserved for one month. This is extendable if the investigation process or paperwork takes more time. Before the reservation, it may be good to get guidance from your real estate agent or you can already hire a lawyer.

Anyway, it is advisable to hire a lawyer for the rest of the legal process. You give him/her a power of attorney to perform in your name all actions necessary to purchase the property. The lawyer will represent you with all parties involved in the purchase of the property: bank, notary, police, court, electricity and water company,… In Spain, the lawyer will draw up the contract of sale and the notarial act. He/she can also help you further after the purchase of the property so that you meet all the legal obligations of the country.

7. Further financial and practical settlement

Even after the reservation agreement, there are still some things to be dealt with. If you opt for financing, look for a bank willing to lend you money. In addition, arrange for a completion. It is advisable to do a completion before the deed passes. Suppose there is still a lot to finish, then the deed can be postponed if necessary. Obviously, before the deed is signed, go to the property (or have the real estate agent do so) to see if everything has been built or left as agreed upon. Also think about any remodeling you still want to do, connecting utilities and delivering furniture.

If you have properly followed the 7 steps above and found your dream home abroad, it is now time to fully enjoy it and be happy!

Source : Azull