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Buying a Golf Property Overseas

Guaranteed rental schemes

More than 40 years ago the French government introduced a scheme to encourage holiday home owners to let their properties to tourists. Owners were offered tax incentives and the scheme has taken off across the world. Under the arrangements buyers hand their properties over to a management company for a set period of time – often as much as 10 years – and they are let to holidaymakers in return for a guaranteed income. Owners are allocated several weeks a year for their own use. The rent is usually quite low – about 4.5% of the property’s value per year in France – but the income is regular and guaranteed and cuts out the hassle of managing bookings, changeovers and repairs from back home. In the pretty village of Roquebrune in the South of France, you can buy a villa on a golf course for €577,500 and lease it back to the developers for 11 years, earning a guaranteed yield of 3.9%.

And finally...

As with any property purchase, it is vital to ensure you have researched all aspects thoroughly and are in possession of all the relevant facts.

When deciding where to buy and calculating how much you can afford to spend, make sure you factor in purchase costs and fees, which can often amount to approximately 10 per cent of the purchase price – more in some countries, such as France.

Make sure that legal documents are checked by an English speaking solicitor who understands the law in the country you choose. In particular, inheritance laws vary throughout the world and you may need to change your will.

Also, take independent expert financial advice. Many foreign lenders grant mortgages to British buyers, but interest rates are often higher than our own, so you need to fully understand the costs of borrowing. Consider consulting a specialist foreign exchange company, too, as their rates are often cheaper than high street banks. Even a small difference in the rate translates to a lot of money on a £200,000 deal.

Check the tax position, especially if you are going to earn income from rentals. Some countries have agreements with our Inland Revenue that prevent owners paying tax twice – once in the country where the money is earned and again when it is brought back to the UK. Expert advice is vital.


More pages

Page 1: Introduction
Page 2: Spain
Page 3: The Caribbean
Page 4: Guaranteed rental schemes

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