Once you have a rough idea of where you would like to live, it is sensible to visit the area at different times of the year. Then you are in a better position to decide whether it is a place for all seasons – an area where you could live all the year round – or essentially a holiday destination.Another advantage of repeated visits is that you will get an overview of the property market and the local facilities. You will also reach a conclusion as to the type of dwelling you would like – a detached villa, a linked house, an apartment, sheltered accommodation, etc.Even more importantly you will develop local contacts with local knowledge who could prove useful later on. These might include:

Renting

There is little point in going though the lengthy process of acquiring a property if you are only planning to live in it for a relatively short time. To purchase a villa only to sell it two years later will probably involve you in a loss unless prices rise dramatically in the intervening period, given the costs of buying and selling.

The alternative is to rent. Privately rented accommodation is much more common on the continent than in the UK, particularly in the cities, and may work out cheaper. If you invest your capital rather than use it to buy a property you may find that your annual investment income is more than sufficient to pay the rent. You might also avoid problems relating to inheritance laws in certain countries.

You need to be aware that in some countries, such as Thailand and Indonesia, restrictions are placed on the ownership of freehold property and land by foreign nationals. There are ways around this problem – one idea is to form a company – but it is essential to get independent legal advice if you plan to go down this route. In some of the newer countries of the European Union, too, you may enounter problems in purchasing property in one’s own name, but it is likely that the regulations on ownership will become easier in the future.

In resorts and in the more rural areas house purchase tends to be the norm among foreigners planning to take up permanent residence. That is not to say that renting is impossible at resorts. House agents and developers will always prefer to sell you a house, but during periods when the housing market is sluggish they may decide it is better to have tenants for properties rather than leave them empty. You may also be able to negotiate a rental agreement with a British property owner who hopes eventually to sell.

In either case it is essential that a proper rental agreement is drawn up and signed, and it is advisable to take legal advice. In France, for instance, the letting of accommodation (apart from holiday lets) is governed by the Loi Méhaignerie.

Case History

Mr and Mrs L initially decided to settle in Portugal – not on the Algarve but close to Lisbon where they found rented accommodation easily. After two years they moved on to France – to rented accommodation in Perpignan. They stayed there for four years and were then offered the opportunity to buy their house at a considerable discount. Although it was a very tempting offer, they decided to return to the UK to be closer to their children and grandchildren.

Your Lease

The lease should contain the following details:

• a full description of the property including an inventory of fixtures and fittings
• the rent payable – including the initial deposit
• service charges
• liability for local taxes
• liability for repairs
• duration of lease and any opt-out clauses
• amount of notice to be given.

 

During your house search renting a home for a short period – rather than staying in a hotel – serves as a useful introduction to living in a particular area. It is worth bearing in mind that in the off-peak season you may be able to rent a holiday property for up to three months from a package holiday operator at very attractive rates. The magazine Private Villas contains an exclusive selection of holiday villas to rent.