Buying a second home can be an exciting and rewarding venture, especially if you choose the right location. If you have ever visited Croatia, it is easy to understand why this lovely Mediterranean country could be just like that.
Let's find out why!
Why is buying a second home in Croatia a good idea?
Secondary properties are usually vacation properties that are used by owners at certain times of the year. The main purpose of such a property is to provide its owner with an environment where they can relax and recharge.
And what better way to recharge than near natural beauty, by the sea, with a little sun on your skin?
Croatia has one of the most beautiful coasts with beautiful views and more than a thousand beautiful islands to explore. Also, the quality of bathing water in this country is among the highest in Europe. When it comes to coastal bathing spots, Croatia ranks first in Europe according to the latest research of the European Commission and the European Environment Agency.
Furthermore, Croatia has great weather and lots of sunny days that allow you to spend a lot of time outdoors, all year round. This is especially true for the Adriatic coast and its picturesque towns.
Compared to other European countries, Croatia offers relatively affordable real estate options. Yes, property prices on the coast have risen, but you can find luxury properties at a fraction of the price you'd expect in some other European countries.
The cost of living has also increased due to inflation and the introduction of the euro. However, it is lower than in other parts of Western Europe and Scandinavia.
In other words, the cost of living in Croatia for most people who come from larger European cities and more industrially developed countries it won't be a problem.
Quality of life in Croatia it is quite high, especially if you have your own property and a good European income. The crime rate is low, Croats, especially those on the coast, cultivate a relaxed lifestyle. If you buy a second house in Dalmatia, you will have the opportunity to drink a lot of coffee with the locals, under the Croatian sun. The food is delicious and a lot of it is locally grown or farmed (though not as much as it could be).
The public healthcare system is good, and there are more and more options in the private healthcare system.
Finally, your second home in Croatia can be an excellent starting point for exploring Croatia and Europe. Croatia has a fantastic geographical location and is well connected to other European countries. You can easily travel by plane, but also drive to Slovenia, Austria, Hungary, Italy, and even Germany.
All in all, it is the perfect place for a quiet vacation from the stress of big cities and everyday life. As for you, as for the potential tourists to whom you would rent your property while you are not using it.
Buying a second home for investment - start with Croatia
Investing in a second home in Croatia can be a lucrative opportunity for passive income.
For example, key areas such as Dubrovnik, Split, Zadar County and Istria are particularly attractive due to their popularity among tourists. The stunning Adriatic coast, historic cities and exciting national parks make Croatia a sought-after destination for travelers from all over the world.
Short term rental can generate significant income for property owners and return investment faster.
If you want to invest in apartment on the Croatian coast, one of the best options would be to find an apartment located in or near a tourist town. Villas and houses by the sea or with a sea view, which can accommodate more people, can ensure a faster return on your investment. In many coastal destinations, there is a serious demand for villas and apartments with pools that offer more privacy.
On the other side, real estate market in Croatia it has slowed down in recent months, especially in the capital, Zagreb. One of the reasons for this could be abolition of state subsidies for young families.
Still, real estate prices on the coast are not falling. Investors do not want to sell their properties at a lower price. Due to inflation, the value of money may decrease, but real estate prices successfully resist this.
That's why it's a good idea to invest in real estate in the desired Croatia coast and secure a second home and passive income.
Who buys holiday homes in Croatia?
It is a common belief that only wealthy people can afford a second home. This is no longer necessarily true, s considering that Croatian legislation offers significantly lower taxes for property owners compared to other European countries, which also applies to non-residents.
When we add to that the abolition of all border crossings with EU countries from January 1, 2023, it is no wonder that Croatia has become one of the favorite destinations for a second home.
This is why many Europeans, especially from Germany, Austria and the United Kingdom, enjoy Croatia's proximity, accessibility and stunning scenery.
Retirees often want to spend their golden years in this quiet place. Let's not forget smart investors from all over the world who recognize the potential for income from renting Croatian real estate. Almost every fourth apartment on the Croatian coast was bought and owned by a foreign citizen.
Disadvantages of buying a second home in Croatia
It's easy to fall in love with Croatia, but before you make a serious investment like buying a second home here, you should explore the other side of the coin.
Owning a second home involves endless maintenance and management costs, which can add up over time.
These costs include regular maintenance, repairs, property management fees and utilities. If the property is located in a coastal area, exposure to salt water and sometimes harsh weather conditions can lead to higher maintenance requirements.
If you plan to rent out your property, consider the costs associated with marketing, cleaning and guest services.
In addition, the real estate market in some areas of Croatia can be highly seasonal, with fluctuations in rental demand and property values.
Carefully consider this seasonality and plan your rental strategy accordingly to maximize returns. Furnishing your property in a smart way can help you extend your rental season.
Another thing to consider is the language barrier. Although many Croats speak English, the language could become a problem in more rural areas. If you think this might be a challenge for you, learn some basic Croatian or hire a local interpreter. This can help alleviate these language barriers and facilitate smoother transactions and interactions.
As you can see, the disadvantages of buying a second home in Croatia do not have to become a problem at all for a careful buyer who has prepared for them.
Finally, buying a second home in Croatia offers countless advantages that make it an attractive option for both personal enjoyment and investment.
The country has beautiful coastlines, clear seas, excellent weather and nurtures a relaxed lifestyle. Compared to other European destinations, all this has a relatively affordable price.
Investing in Croatian real estate, especially in popular tourist areas on the coast, can bring significant rental income and return on investment. While the real estate market fluctuates, coastal assets remain resilient.
Photography: Photo by Antoine Similon on Unsplash, Photo by Slaapwijsheid.nl on Unsplash, Photo by Vincent Rivaud, private archive.