If you had 100k inheritance, that you wanted to invest in a holiday home abroad, at least two bedrooms

[TheGingerCatsWhiskas]

Where would you look ? Ideally two bedroom, a balcony or sit our space and a sandy beach

Yes this. Far better idea

Funnily enough we have a similar situation in my building. The renters really do become a nightmare. There are some lovely ones and some horrible ones who don’t understand the other 19 flats in the building are occupied by people with jobs, families, lives here. We are not on constant holidays - neither are we interested in your renters’ philosophical 2am ramblings from the balcony who wake us up.

The lift thing is quite funny but also a bit petty, I get your point 😂 We have an old lift only operated by a key and a strict unwritten rule on when we are to use it. Never on the way down. Foreign owners’ tenants don’t understand the key and button rules, and use it all the time even if not carrying shopping, etc. The lift breaks a lot and repairs are lengthy and annoying for those of us on top floors with kids / things to carry. It’s a bit much, but I wouldn’t be against you paying extra for maintenance if that was the behaviour indeed.

Do you plan to live there upon retirement, Op?

Yes, although it rents a lot via word of mouth nowadays, friends, repeat customers etc. It’s in a popular area (we spent more than you are) and has also increased in value by around 50% since we bought it in 2015 (we completed just after the referendum vote). To be able to rent it out, we do have to have a tourist licence though which is one of our bigger costs after communal fees (it’s an apartment) and electricity which is expensive as we are in the Balearics. I’m not an EU passport holder but it’s never been an issue as I don’t spent long periods of time there.

I don't understand why you want to saddle yourself with a property in another country (which comes with lots of ongoing costs and hassles) when you don't even know where to buy! Everyone I know who has a home abroad bought it in a place that they love and want to go back to regularly, in fact several times a year. I understand that you want to invest your money in something, but if you don't have a love of a particular place, buying somewhere abroad is a strange choice. You might as well buy a buy-to-let in the UK if you just want an investment. It's certainly a lot easier to manage all the legal stuff in English.

I get an average of 14.5% on my S&S ISA so if I didn’t touch the 100k and allowed for inflation I would have a chunky amount each year for a holiday fund.

We bought a second home overseas after inheriting. Ignore people who say you won't get anything for your budget, they are wrong.

Plenty of parts of France and Italy have properties within your budget and houses lying empty. The local communities will be pleased the house had been bought and you are likely to be welcomed. If you go somewhere where there's significant pressure on housing, prices will be higher and there may be resentment from local people.

Italy is a nightmare to buy property in though unless you’re Italian or fluent in Italian.
Spain and Especially Portugal are easier but there are lots on oncosts- non residents tax etc, a yearly fee if you’re part of a community/urb etc

Investing in property (in the UK or abroad) is the last thing I'd do with £100K, especially if I knew nothing about the local market and taxation system, and had no experience of letting out a property in any way. I'd also hate to go to the same place for the majority of my holidays, plus regular visits for maintenance, managing repairs, sorting cleaners etc.

I would speak to a financial advisor who would probably recommend paying off your mortgage, investing sensibly, and/or putting it into your pension.

Investing in a holiday house would be way down the list of options, below getting a buy to let in this country, which often comes up as an idea but having been a landlord, I would never recommend.

It’s the same everywhere

You will not get anything in a nice part of the UK for £100K.
Anything near a national park will be 2 or 3 times that at least.
You also need to factor in all the costs including double council tax, heating, water, insurance, repairs, etc.

It's not an investment as such. If you invest £100K you might get a return of 10% on a good run long term but more like 4-5% and you will pay tax on that interest if you are a tax payer, and capital gains as a 2nd home when you sell.

Did you read the OP?

I've read all her posts. Does that make a difference to my comments? The same applies more or less whether she buys in the UK or abroad.
There are several comments already about buying in the UK.

Think your maths are out - unlikely to generate more than 4.25 % interest which after tax at the lower rate would be £3400 - that would still pay for a couple of holidays a year tho

@bellventrico Depends where you want go but it’s better than some cheap appartment in a place you will grow tired of. Your family won’t thank you!

My PIL had one on the Costa del Sol for 30+ years. It sold for over 200 euro 4 years ago but it was in need of renovation. It was on a holiday complex w pool. It was 3 bed, 2 bath so a big flat. They went about 3 x a year for up to a month. Then when we (and BIL) had families we used it when DC were young. We made friends there so we’d see the same people every summer etc. PIL made friends there too. They also went on other holidays as could afford this.
They never wanted to let it out, but many owners on the complex did, seems like a no-brainer to me.
£100k isn’t much though and won’t get you a decent holiday home in a popular area I don’t think.

Buy LGEN and use the £8k dividends to fund your holidays.

I have a second home in the UK and maintenance is a lot of work. I can only imagine how hard it would be if the house was in another country where you have no connections and don’t know how everything works.

A holiday home is absolutely, hands down the very last thing I would buy as an investment.

Go to your bank and ask them about investing your money sensibly, and then take it from there

It’s being near the sea that will make the budget most challenging.

Ciao. I don’t know where you could buy near the sea for that in Italy other than the far south. You could get a flat or even a house in village somewhere in the Garfagnana or up around Bagni Di Lucca in Tuscany or around Todi and Orvieto, Umbria.

For the sea I’d look in Puglia, around Bari.

Stocks are a much more flexible way to invest with likely better returns.

you could open a GIA and a stocks and shares ISA and every year move across 20k to have it all growing tax free, it’s magic. Really easy and very accessible.

if it’s in property then you have sell the whole thing to get any money out? Or remortgage it? I think unless there is a place you love being and know people and want to retire to then it’s likely not worth the hassle.

I made 14% last year after ifa fees and tax.
I averaged well over 8% for the last decade or so...

Exactly, I can’t see why people are getting 3/4%.

Get the money into an ISA. Put in the max each year and invest in a low cost tracker fund that pays some dividends. Use the dividend to have a nice holiday.

that is a far safer more tax efficient investment strategy, and will build a safe legacy for the future.

Owning one house is always high risk. What if the roof needs work? Or the local taxes change? A house can be a massive burden and a money sink. Don’t do it

Bear in mind - Airbnbing a property in a different country is a tremendous ongoing hassle.

You will need a housekeeper with reliable cleaners and a local handyman on tap.

In Italy you will need to be registered with the local commune and declare all guests every stay and send their passport photos to the commune and they need to pay a stay tax.

You will pay 21% withholding tax (cedolare secca) on each stay, which if you are on Airbnb, VRBO, Booking.com online platform, they will collect for you.