Check out the cost of living in an overseas property or holiday home
Whether you are moving abroad to live in your overseas property permanently or will just be making regular visits to your holiday home, you need to know the cost of living in your destination country. This is essential, especially on a permanent relocation or retirement, because your enjoyment of your new surroundings will be reduced if your budget is too tightly stretched.
Anyone thinking of moving abroad or visiting a holiday home can check out our country-by-country cost of living guides for everyday food items, utility bills, petrol costs, and a night out. No matter what your reason for buying overseas property, you should also research costs that fit your individual needs ie medication, green fees, buying and taxing a car, school fees and uniforms, occasional flights back to the UK etc. Also, don’t forget to budget for getting around and about from your overseas property or holiday home. If your overseas property is in Florida, for example, you won’t get far without a car, so you must add vehicle costs into your budget. On the other hand, if you are moving abroad to a vibrant year-round Spanish resort, you may be able to manage without your own transport.
If retiring to an overseas property, carefully research your budget
If you are moving abroad to spend your retirement in your overseas property or holiday home, you will probably be on a fixed income. You therefore need to be sure your income level will support the cost of living in your overseas property. If things are tight to begin with, and the cost of living rises sharply in your new country, everyday costs could eat into your savings.
If moving abroad to find work, how much can you realistically earn?
If you are moving abroad with the intention of finding work once you are settled in your overseas property or holiday home, you need to work out how much you need to earn to afford to live a comfortable life in your new location. When you know that, you must find out if you will be able to achieve this level locally. Clearly, there is no point thinking in terms of western European salaries and costs in a country where the local economy and the cost of living are poor. Living in your overseas property means living in a local economy, which in turn means living off the local economy.
Budget well for visits to your holiday home
Even if you are not moving abroad permanently and will be using your overseas property only as a holiday home, you should make sure the local cost of living is within your budget. If it is higher than your holiday budget allows, you will be less inclined to visit often, and may not be able to enjoy your holiday home to the full. Although everyday items may be less of an issue for owners of an overseas holiday home than for permanent relocators to overseas property, you should do some research into the cost of attractions (and availability of family tickets, for example), taxis, hire cars and cable cars, ice creams and beach snacks, hire of sports equipment, and eating out.
Visit the country before you buy overseas property
The cost of living will be especially important to you if you are planning on moving abroad permanently or retiring, but it should not be ignored if you are buying or visiting a holiday home. Wherever you are thinking of buying your overseas property, visit the country beforehand to get a view on shop prices. Then ask about other costs on expat forums, check out online shopping sites, and find the rate of inflation in published indices (try www.economist.com or www.oecd.org). And don’t forget to look at our cost of living guides, here on Overseas-Homes-Direct.com, before buying overseas property.
