Owning a property abroad can cost much more than expected, study suggests

[Nicholas Wallwork]

Maintaining a holiday home can cost more than property investors expect in terms of unexpected costs, currency charges and local taxes, according to new research.


Some 40% of overseas home owners have had to fork out for unexpected maintenance costs, currency transfer charges can cost owners £510 annually and gardeners are particularly expensive in France, according to a report from Post Office International Payments.
Many owners have not budgeted for these extra costs. The top cost is council tax, followed by shared maintenance fees for the upkeep of communal areas, central heating, air conditioning, gardening and cleaning.

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[Damian George]

Couldn't agree more, in a 5 year period i have had nearly something go wrong every year, hot water, leaking toliet, flooding, non payment of rent, and finally the most disgusting and filthy tennant know(more mother cried at the state of the property when he moved out without cleaning.)

Managing a property from overseas not for the faint hearted


Currency exchange rates though are the killer, many of my customers send their mortgage repayments at an average of €2k which 3yrs ago cost £1,428.00 now they are paying £1,818.00 a month on a euro property. (a 30% increase)


What is worst i was paying £800 to Australia for a AUD 1,800 mortgage and i know pay £1,265 per month, a woping 58% increase in 18mths, added to tthat my fixed term rate is about to come to an end and interest rates look like skyrocketing in OZ.

On the flip side i have managed to sell one of my properties for AUD 100k profit, so instead of a £40k profit i am returning £62,500 more than covering the extra repayments and all the other mishaps that have occured

good luck to all that give it a go

 

[AshleyIngle]

It is frustrating - Im sure Damian would agree, when Currency exchange and exchange rates are ignored until the last minute, but they base the exchange rate on 1.20 and unfortunately get a shock when the rate is (has) been down to the 1.11s!

Damian, you have probably sold your Aussie property at the right time. Good going!

Im sure anyone reading these forums are extremely savvy for going into internet forums and likely to find out as much as they can before getting into a position.