SUN LIFE PROPERTIES LLC
PORT SAINT LUCIE, FLORIDA

Välkommen till Sun Life Properties Founder of Sun Life Properties One way to beat both currency and fraud issues is to contract with a UK holiday company who could offer you a fixed contract (regardless of number of weeks used) in Sterling. Have a look at the likes of Villa Plus and James Villas etc for typical market values and to perhaps make an enquiry as to whether they are looking to add properties to their portfolio in the area you are interested in buying. Knowing what you want your property to do for you is explored more fully on page 7 but if we take the most popular current locations for residential property hunters (we are not talking about commercial property investment in this guide), it’s a useful snapshot. Spain is the stand-out favourite, according to multiple sources, because it ticks so many boxes. We are not only talking about the perennial issues of accessibility, climate, beaches and quality of amenities that have kept its tourism numbers swelling year after year, but the fact that properties are so affordable there currently. In 2014 Spain began to emerge from its worst ever property crash so that whilst prices are still well down on their 2006/07 peak, investors have the confidence of putting their money into a market capable of recovery. A holiday home is, perhaps, a big treat to yourself and a significant capital outlay. To be added to the cost of the property is the cost of purchase (perhaps around 12% in Spain) and running costs. Prudent budgeting is therefore vital if you are to enjoy your holiday home without financial worry. It may also mean you wish to let your property out to help pay for its upkeep. This may then influence your choice of location of holiday home – perhaps less rural idyll towards walking distance to shops, restaurants and other tourist amenities? retirement and emigration often go hand-in-hand. It is an appealing prospect to sell a higher-valued UK property and to get ‘more’ for your money by buying abroad. This is often the intended ‘last move’ and a reward for many years of hard work. Many people enjoy this change and join local as well as expat communities in the sun. But consideration should also be given to later changes to come in life with, perhaps, access to and around the property important should mobility become a factor. Access to medical care and perhaps a care home for a partner, whilst not in the mind of most 50-somethings, should be a key consideration as we are living longer, but perhaps also getting mentally and physically frailer because of it. With higher sales and purchase costs than buyers are used to in the UK, it could be very expensive and unsettling to move property again after retirement. Finding a buyer for your property (if in a typically expat or touristic area), will also follow the pattern of demand – try and sell in a weak market and your property could take many months or years at the price you want / can afford to sell at. Buying or purchase costs involve a combination of agent commission costs (varying by country and sometimes region); transfer tax or stamp duty, notary/land registry costs, legal fees plus any mortgage arrangement fees. If you’re buying new-build there’s the VAT – although this may be redeemable if you opt to rent out your property professionally (French leaseback and tourism residences in Austria, for example). On top of the cost of any mortgage on a property, there will also be ongoing taxes and running costs on second homes. The level of these is important to ascertain early on, as it might help decide what type of property you buy (new or old? standalone or part of a complex?) as well as where you buy it. Also, these monthly expenses will also eat out of any rental income you make from your property, or indeed force you to think about renting it out to “wash its face” (cover its costs). If you don’t want the hassle of doing this, then make sure you can afford to keep the property without letting it. Another advantage of buying pre-construction (off-plan) or during the build process is that you often get to decide the finishes or even layout of your new home. Having selected the exact location of the plot (if part of a complex) there is a far greater element of choice available in shaping the final product you want. The plot you choose will be significant when you come to sell – homes on corner plots may sell faster than others mid-terrace; whilst those backing onto a road might take longer. So far so wonderful, but some words of caution too: make sure you do due diligence on the builder and have a firm understanding of what costs you might be liable for – the buyer of a new-build might have extra costs that the resale buyer doesn’t. For example, in Italy your kitchen might not be included. Also, buyers anywhere should be aware of expensive furniture packages. Do also check whether a property complies with modern building regulations and if any alterations or extensions come with the correct planning permissions. Get your lawyer to check and avoid heartache later on. Property hunters abroad tend to be much more educated than they were a decade ago and, apart from appreciating the need to take independent legal advice, many have learnt to use a foreign exchange (or FX) company. You can typically save up to four per cent over using a bank – so £4,000 on a £100,000 apartment; £8,000 on a £200,000 villa, for example. You will typically be given online account access from which you are able to transfer Sterling to your broker and they do the rest - such as making regular payments abroad.