While many retirees have considered buying a vacation property to escape cold winters, to rent out for passive income, or simply have a vacation spot for far-flung family members, there are a number of considerations to keep in mind. Dreaming of sun-soaked Mediterranean beaches, read this before you take the vacation homeownership plunge.
Run the numbers
Many retirees are living on a fixed income and cannot devote unlimited funds to maintain their second home. Expenses such as taxes, maintenance costs, insurance, and property management fees can make the difference between great passive investment and a problematic money pit.
Before committing to purchase, all the costs of ownership should be accounted for. Choose an experienced real estate agency like Prime-Property who can guide you through the buying process and help you understand these costs.
Cyprus is a phenomenal choice for investment, as it is located on the beautiful Mediterranean. Whether you are planning on a purchase, renting long-term is a great way to become acquainted and find out about your investment opportunities.
Renting Out Your Property
One of the best parts about owning abroad is you have access to multiple revenue streams. As a retiree, you can take advantage of multiple streams throughout the year when you purchase your home in Cyprus. For example, renting out your house for unique local events or renting long-term for people looking to get away or work abroad is a great money generator.
As your house appreciates in price, you can enjoy the rental income until you wish to sell. If you are concerned about the responsibilities associated with property management, let experts in the field help you via rental services. Prime Property in Cyprus offers multiple support services, so you can enjoy the passive income without the stress.
Residency benefits
Buying a second home abroad can also give you resident benefits. Cyprus has become an attractive place for buying vacation homes as homeowners are eligible for Cyprus permanent residence.
Residency benefits are important if:
- You are considering moving into your vacation home full time
- Investing in a business in your adopted homeland
- You want to take advantage of the excellent tax benefits
Cyprus permanent residence has the following benefits:
- It is granted to all family members including children and parents from both sides of the family
- No requirement other than to visit Cyprus once every two years, unlike other European Union states, which insist on residency for at least 3 months per year
- Makes it possible to have a business in Cyprus and to receive shareholder dividends
Takeaway
Whether you are purchasing a second home in retirement for pleasure, profit, or both, think carefully before making a purchase. A vacation home can be a refuge from winter weather and a fun family vacation destination, but it can also cause financial stress and family estate quarrels. A second home can be a great source of passive income, residency benefits in your new country as well as an asset you can pass along to your children. Research is key. Choose a reliable real estate broker to feel confident in your home purchases …. and enjoy the sunshine!