The sun, the sangria, the days spent lounging on the beach, the long lunches and the late evenings, what better reason to buy a home in Spain, Cyprus or Croatia?

If this is your way of thinking, you have the right idea, but it needs to be looked at slightly more objectively.

The decision to purchase a home in any foreign country, needs to be approached with the same attention to detail you would employ when buying in your home country, and there are even more factors to consider.

Will the purchase be strictly a holiday retreat for 3 weeks of the year, is it to be rented, short term or long, which management company to use, the list seems endless. But by approaching it rationally and with a critical eye, you can soon cut through the seemingly impossible task of pleasing everybody.

“Can I afford it?”

In the excitement of being on holiday, noticing that the beer is cheaper than at home and the food is too, rash decisions can be made. The question needs to be approached once back at home, away from the temptations of the exotic location and the generally improved mood that accompanies a holiday. Looking at the relevant costs involved not only in the acquisition of the desired property, but also the costs involved in maintaining it, community fees should they apply and the cost of annual travel to and from your country of choice in order to effect any changes or maintenance necessary. The additional cost of the mortgage, plus the maintenance of the property needs to be carefully evaluated to make certain you will still be able to afford to visit your home in the sun, once you have bought it!

“Holiday home or Buy-to-let?”

Yes, you might be able to rent your apartment for certain periods of the year, at premium rates and contribute to the annual mortgage costs, but do not count on it. There are more and more people buying with this thought in mind, but there is a strong possibility of you not being able to let your property for the number of weeks you budgeted for. By ensuring you can afford the property strictly as a holiday home with no account made for leasing it to others, you eliminate the risks involved in relying on this rental income. Any rental income from the apartment is the bonus, holiday money. Should you place your rental apartment with a rental agent, they typically take a 15-25% commission from the rental income as a management fee.

“Short-term vs. Long-term leasing”

The short-term leasing option carries the risk of not renting the newly bought property in Spain for as many weeks per year, but when it is rented, it is usually at a premium, making it an attractive alternative. You can plan your holidays with greater ease and do not risk being unable to live in your own flat/house when on holiday because there is a sitting long-term tenant. It does not however, offer the security of the long-term lease. By deciding on the rental strategy before you purchase you make the entire process of buying in Spain a lot smoother by understanding the options and the alternatives before viewing unsuitable properties.

“Do I need a management company?”

It is advisable to employ a management company to look after your home should it be available for short or long tem letting. The advantages far outweigh the costs involved and give you peace of mind. When choosing a management company, ask to see some of their properties and call the references they give. There are a number of management companies that have excellent reputations, so do not be embarrassed by shopping around for the best deal that suits you.

“What add on costs are there to owning property in Spain?”

As always, there are little mentioned costs associated with owning property in Spain. These taxes are fixed by the government and are related to your property value. These taxes and annual contributions can be deducted directly from your Spanish bank account. They are not excessively high, but a note must be made of them. Your lawyer can advise you on the exact costs and methods of payment.

If you can answer all these questions, you are ready to make the decision to purchase. The problems only arise if you do not answer these questions before rushing, or being pressured, into signing the offer to purchase.