To answer the question of whether it is profitable to buy a resort property, you need to understand the purpose of purchase.
The maintenance of the apartments consists of the following items:
- Maintenance of the common property of the complex.
- Contributions to capital repairs.
- Local property tax.
- Garbage collection costs.
- Electricity costs.
- Water and Wastewater costs.
- Internet and television.
On average, if you live for about 2 months a year, the cost to pay for a 1- to 2-room apartment will range from 450 euros to 3500 euros per year, depending on the country, the size of the apartment and the steepness of the complex where they are located.
When choosing an apartment we recommend to pay attention to the costs and find out before buying your holiday property.
How and when to examine properties before buying
We recommend examining options in season. This is especially true for the seaside properties. During this period, everything in the complex should be functioning. Elevators should be running, pools should be full and clean, lights should be on everywhere, hallways and grounds should be cleaned, stores and restaurants should be running.
If you come at a different time, then nothing or part of it will not work, because it is out of season. But it may not work simply because no one is engaged in the maintenance of the complex, and you will be told that in the summer, they say, everything will work at full capacity. Maybe so, and maybe not. The tenants in the complex may not be, and you will have no one to ask. In the summer you come to rest, and everything will look the same as in November, for example.
Is it profitable to buy real estate abroad for vacation?
In the case of buying an apartment for a vacation it is difficult to answer unequivocally whether it is profitable or not. If the property will be used 1-2 months a year or even less, then financially it is definitely not profitable. The cost of purchase and maintenance in this case will be much higher than the cost of paying for the hotel.
But many people do not always make decisions based on rational logic. Emotional aspect, too, should not be discounted. If it is important for you to come to your own place, to feel at home, to watch the sunrise or sunset from your own balcony, then considerations about finances and money can move into the background. Sometimes we have to make ourselves happy, even if the financiers will be shocked.
There is a category of people who buy real estate just to feel like they own a house or apartment abroad. Having property abroad gives some confidence in the future, and also allows you to feel like a citizen of the world.
Others buy property abroad to combine business with pleasure. In many countries, owning real estate allows you to get a residence permit or a long-term multiple-entry visa.
Development of resort real estate rental technology
Technology has played a huge role in driving the growth of the short-term rental market. Online apartment reservations on platforms like Airbnb, for example, make it easy for guests to book the apartment they want to stay in.
For owners, they provide an opportunity to tap into a huge, let’s face it, global tourist market and host guests from any country in their apartments.
If you are considering the purchase of a resort property, determine your purchase objectives and weigh the pros and cons. In a future article, we will discuss how to manage a property located in another country. This article will help you make a more informed and rational decision.