Keep the costs down

Hello – how are you? This is a happy week for me as my daughter is in town. She lives in Dubai and is here to complete a course module for her studies. She arrived in London hoping to escape the heat in Dubai, only to be met with uncharacteristically hot weather here! I did warn her in advance – but do kids ever listen to their mothers? Thank heavens it’s cooling down a little now, for both our sakes!

Are you going abroad this summer, either on holiday to ‘recce’ out your new projected homeland, or indeed to actually relocate? For those sun worshippers amongst us, it may interest you to know that the number of tourists worldwide have dropped, mainly of course due to the almost universal slump in the economy.

So…what to do about this?

If you Google holiday deals, you will find that many holiday companies are offering cheaper deals that ever - a sign of the times. But, if like me, you like to travel independently, you may find that planning a trip yourself can work out very economically. I have often renegotiated accommodation prices and today, with tourism in the doldrums, I would certainly try this. In Greece for instance, admittedly out of season, I have seen from the prices on the back of the door that I paid only a third of the room price! There are low cost airline flights plus a growing choice of self-catering options, as well as keenly priced hotels. You may find B & Bs an even better option that the bigger hotels as they can be more flexible price-wise.

Sometimes too it pays to go just a short distance from the most popular areas – the price can drop dramatically. Most visitors to the Algarve for instance go west from Faro airport to the busy coastal resorts of Albufeira, Portimão and Lagos. These are the most popular destinations, and therefore the most pricey. If you go east to the nearby pretty riverside town of Tavira for instance your holiday can cost half as much! Food is much more affordable and so is the accommodation.

Try and go where the locals go rather than where the tourists congregate – they know a whole lot more than we do about their own country!

And if your trip is part of a property viewing trip, this could be a very good time. Prices have dropped virtually worldwide and some are not expecting the market situation to improve before the second half of 2012. You do however really need to focus on accessibility – always important but never more so than now. You don’t want to have to spend hours – or hard earned cash – getting to your property.

I write a monthly Emigration newsletter and I am dedicating my end July/ early August one to transport – you may like to look at it. Just go to: http://www.emigrationguide.com/newsarchive.htm around about 29th July.

Enjoy summer and keep smiling!

Carol.

Money Saving Tips Abroad

Hi there – how are you?

I never, in my wildest dreams, imagined that I would be hoping for a cloudy, cool day here in London. While my friends were here and Wimbledon was on, it would have been a tad churlish to wish for overcast skies but this week at last I welcome the cooler weather!

Are you going away this summer? Whether you are looking to buy a property abroad or just joining the steadily declining number of holiday makers overseas, there is no doubt that financial restraints have meant that tourism has dropped. Most of us or having to tighten our belts and count the pennies, to use two clichés in one sentence! Not only is getting out there more costly but accommodation is stretching budgets too, so here are a few of my own tips for saving money next time you are abroad:

Food shopping

• It’s true that there are usually some lovely specialist stores nearby but prices can be on the high side if there is little competition in rural areas. It may be wise to consider shopping online if you can. This will mean that you can compare pricing and buy cheaper plus you will be less inclined to impulse buy!
  
• You could also find out if they have something like special offers or ‘double point’s days’ at your local supermarket and make an effort only to shop on those days. Also have a look at the items in the section for ‘nearing sell by date’. I have had lots of success here – things are sometimes quite dramatically reduced and are absolutely fine if you are going to eat them straight away or freeze them
  
• Last but by no means least, make a point of using your local fresh produce market for the bulk of your general day to day fruit and veggies if there is one in the vicinity. You may have to queue at the popular stalls but produce is usually cheaper and often much better than at the supermarkets
  

Make use of your own garden/land

• Once you have your own property, think about growing your own vegetables. Some friends of mine have a small plot and were absolutely delighted this year to be able to pick the most wonderful green beans, potatoes and tomatoes from their own garden. It is tremendous fun to watch something you have planted grow from seed and not difficult to achieve
  
• Invest in a water butt to catch rainwater for your garden
  

Car boot and bric-a-brac sales

• Every village or town has one or more. Look out for adverts in your supermarket and patronise these – you will be surprised what you can find.
  

General household bills

• Good insulation helps cut heating bills down in winter and air con. Bills in summer. Sealing outside doors also helps here
  
• A wood burning stove and/or an open fire may well be all you need for many of the winter months instead of more costly central heating
  
• Remember to turn off your TV, PC and mobile phone charger when not in use – from the wall and not just on the remote! A little goes a long way in saving you money!
  

Petrol

• Both petrol and diesel are usually cheaper at supermarkets. Try to avoid motorway service stations if you possibly can, they can be quite a bit more expensive
  

Insurance

• This is always worth looking into properly. You need to look at the cover you have as well as any excess and compare to other companies
  

And last but not least - communicate!

• This is vital. Communication with your neighbours, local shopkeepers and new friends is vital, not only for your peace of mind and happiness but for helping you to save money on your general living expenses. When I first bought my house abroad a kind neighbour told me where to get the very freshest bread in the morning which also happened to be a little cheaper than the bakery I had been going to. OK, a small point but a good example of how integration can help you in so many ways. So don’t be shy, socialise as much as you can and both you and your pocket are bound to benefit!
  

Any tips of your own that you want to share? It’s amazing how sometimes the simplest things can really help. When someone has told me what they do I have often kicked myself and wondered why I hadn’t thought of it…but sometimes you don’t. That’s what sharing is all about, so do get in touch if you feel you have a really good idea won’t you?

Bye for another week – take care!

Carol.
http://www.emigrationguide.com/

Make YOUR financial plan come together….

Hi there.

Well, miracles DO happen! Can you believe the wonderful weather Wimbledon experienced in the run-up to the finals? As I may have mentioned, friends of mine came from South Africa and the USA to watch, and their chief concern was that they didn’t get sunburnt – not a problem usually encountered at Wimbledon! And what a gripping series it is, with the both the men’s and the woman’s favourites out – unbelievable.

I heard recently that they were doing a remake of that classic TV series, The A Team…I know it was ridiculous, but somehow it reminds me of my kid’s childhood, of a less sophisticated era when we all clustered around the TV together to watch instead of the family being spread throughout the house, each at their own computer or laptop.

Remember the catch-phrase – ‘I love it when a plan comes together?’ Well, wouldn’t it be wonderful to jet away to your place in the sun for your summer break, all your plans having come together? If only buying abroad was that easy….or is it? Well, thousands of us Brits do so every year according to the statistics – why not become one of them?

However, has the family agreed on the motive for buying? Is it a heart pounding, emotional fuelled, lifestyle purchase? Or is it a level-headed, pragmatic, money making decision? The majority of people probably want it all - the best of both worlds. However, that peaceful mountain retreat might not rent like the hedonistic beach front apartment…or should it be the city centre apartment which could rent well…but then…do you really want to stay in the business district yourself?

Whatever motivates your purchase, there are certain concerns that you should bear in mind, one of the most important being what financial liability are you taking on and if you can afford it. The papers have been full of property market crashes around the world – indeed mortgages were one of the main factors in many of the bank’s problems.

With 80% of overseas purchases being mortgaged, you need to make sure you choose the correct bank to fund your purchase. This can save you thousands in the long run. Do you need a bank that can facilitate re-finance? What about over-payments, what about off-setting income against mortgage costs? Is there a robust legal process and who should represent you? Cut costs here and you could lose the lot. Also, have you considered what type of property rents well in your chosen area: apartments or villas? Is there a glut of rentable property in the area you are looking at? These and many other factors need serious consideration upfront.

The bottom line is that all of the above involves money and lots of it, so talking to professionals is key. This is a big commitment with big responsibilities. How does it fit into your overall financial plan? Speak to financial advisors who have overseas property experience (not all do), and are familiar with property investment strategies. Understanding the full financial commitment you are taking on, you can then feel confident that you are buying within your budget and not be in for any shocks along the way.

Your plan will only come together only if you actually have one…and then stick to it! Even when buying the holiday home of your dreams the numbers must work… you must understand them, work them out in advance, and then confidently buy, knowing that you have catered for every contingency.

Take care in the week ahead and enjoy the summer sun!

Best,
Carol.
http://www.emigrationguide.com

Renovations

Hey there!

Even I, renowned as I am for a serious allergy to sport, have been caught up in the current sports mania. Okay I don’t actually watch it – that would be going too far – but I have become interested in the fate of Laura Robson, Andy Murray and those vastly overpaid soccer boys. On that subject however, dare I express a wish that Becks was there? It would make watching so much more enjoyable - even I might be tempted to do so…!

Moving on…literally! Chatting to a property expert a few days ago, she was commenting on how enthusiastically the Brits embrace a renovation project. And, in this day and age of concrete monstrosities, sometimes older properties have a very real charm that is hard to resist. This is all reinforced by movies (and I use the word ‘movie’ advisedly - it’s such a Hollywood concept somehow) such as Under the Tuscan Sun that make the whole process one long, romantic adventure…and of course it can be. In Under the Tuscan Sun a series of serendipitous events bring our heroine to a lovely yet dilapidated villa in beautiful Tuscany. Fast forward through a variety of interesting characters - Polish workers, Italian neighbors and an aging British actress - to the inevitable new love in her life…

Sounds great but let’s face it, the whole process usually entails a lot of hard work, more expense than one had at first budgeted for and a number of fraught, stress-inducing experiences along the way.

I have put together a few tips that may just help if you are thinking of going this route:

- One of the reasons often given for buying a renovation project is that it is ‘so much cheaper’ than a home in good condition. Stop right there – is it? And that’s tip 1: always do your sums – before you actually sign on the dotted line. Put together a separate renovation budget and then always factor in additional funding to cover those unexpected costs that almost always raise their ugly heads.

Knowing how much you’re able to spend on the renovation really helps when it comes to choosing a property. If a home needs major structural work and that’s not within your budget, the property may not be right no matter how low the asking price. Always know the full extent of the necessary renovations. Once you know what’s needed, determine the work you can handle and what you’ll need to contract out – then cost it

- Watch out for a suspiciously low priced properties, especially if they have been on the market for a while. There’s usually a reason for that low price…and you need to know what it is

- It is vital that you seek expert local advice. Unless you are able to do all the work yourself, obtain quotes from area professionals

- Check that you are allowed to make the changes that you require. Your idyllic property may just happen to fall within a conservation area that comes with stringent planning restrictions, and even more severe sanctions imposed for breaching them! Or your home might be within an area of significant archaeological interest - which could mean saying goodbye to your plans to built a pool for those scorching summer days

- Factor in to your calculations that renovation permits can add time delays as well as unexpected costs

- Also make sure of the safety aspects of your old property. Is it located in and around an earthquake zone? This could seriously affect your insurance premiums, not to mention the structural considerations and requirements you will need to adhere to when making changes to the building

Let me know if you decide to tackle a renovation project won’t you – I would be fascinated to hear all about it.

All for now: on Wednesday a friend has asked me to join her on a ‘makeover’ two-for - a renovation project of my very own! One paid (by her), one free (for me)! Wish me luck…

Best wishes,

Carol.
http://www.emigrationguide.com