Having a small home to buy a holiday home?

[rangee]

We are thinking about buying a one or two bedroom flat as our main home. When we are in London we are working long hours or out and about. We also spend a lot of time in an overseas location for relaxing and extended working from home.

We are thinking about getting a small London home to free up cash to buy a villa in the sun and splitting our time. This way we could have the best of both worlds.

We are happy in a small 1-2 flat for c£600k and then buy a holiday villa for c £300k. We are late 20s.

If that works for you both, crack on. We bought a modest holiday house in our 30s and have never regretted it. Our family thought we were mad… but many have visited (some repeatedly!) and we are now looking forward to spending more time there when we retire.

I wouldn't be wanting to go to the same villa in the same place all the time - especially not in my 20s. But whatever works for you.

Would you rent this out when you’re not there or would you leave it empty?

Seems a waste if you’re only going to be spending a couple of weeks over there a year max due to holiday entitlements…

If you rent it out, you will need someone to manage the changeovers as you live in a different country it will be impossible for you to do it yourself. All about finding someone you trust, I guess.
If you get it right, it could be a good income top up… once you’ve taken tax, expenses etc off…

@rangee From experience (I inherited a property) it is very difficult to manage finances & property if you are not familiar with that countries language, banking processes etc. As it can be totally different to the UK.

We ended up selling the property as the maintenance of the building is also an upkeep and finding trades people when you don't speak the language or have contacts was difficult. Id just make sure you consider the above before making a decision.

I own a property abroad.
What are your five year plans? Kids? Then a one bed doesn't make sense. But if nothing in the near future then great - £300k will get something nice!
Just be sure you will use it, and if you decide to rent it out while you're not there, you will probably make your expenses back.
Make sure the property is legal and has the right paperwork.