There has been a substantial increase in the number of property investors who are buying an international property as a wonderful investment, and when you consider a few of the many advantages, it comes as no surprise. As HM Revenue and Customs (“HMRC”) defines holiday homes as businesses, they are exempt from changes to regulations governing mortgage tax-relief. This means that you can pay the rental income earned, into a pension pot which allows you to benefit from tax relief.
As with any investment, it is important to look for the right property in the right area. This is something which Lujo Investments can assist you with. It is worth bearing in mind that developers rarely give guaranteed rental returns unless the property you buy is part of a resort or hotel group; and if this is case, the developer may also manage the renting out of the property thereby making the investment totally “hands free”. If not, it is advisable to seek out a reputable, well recommended local estate agent who can assist in renting out your property.
Please see below a list of the top 10 holiday home hotspots as of May 2018 :
- Kissimmee, USA 2%
- Barcelona, Spain 78%
- Cornwall, UK 96%
- Nice, France 96%
- Lake Garda, Italy 71%
- Venetian Riviera 28%
- Miami, USA 82%
- Marbella, Spain 32%
- Faro, Portugal 61%
- Albufeira, Portugal 4.50%
