When people think of getting a holiday home they instantly dismiss the idea due to high property prices and interest rates. However, more people are finding ways of making their holiday home pay its way and even make them a nice little profit.
It is likely that you will only be using your holiday home a couple weeks of the year so it makes sense to let it out to other holiday makers for the rest of the time. This is reason enough why so many people invest in properties abroad every year. The money being made from renting your holiday home could be enough to pay off the mortgage of your holiday home or any other costs that you may have.
Another advantage of buying property abroad is that many resort developments are in ‘emerging market’ countries. This means that there has been less development in the past and therefore there is now greater scope for large – scale resorts to be built in prime locations.
These are the best places to get value for your money and to make a profit as these resorts are not heavily populated at the moment so house prices should be relatively low. However, as these resorts become more heavily populated and built up there will be more demand for properties which will result in house prices going up. If you get in to these developments quickly you should be able to make a healthy profit when you go on to sell your holiday home.
As well as this, governments in developing countries are becoming switched on to the economic benefits of having many first – world citizens owning a holiday home in their countries because of the transfer of spending that will come with it. France, Florida, Cyprus and Spain are three of the most popular holiday home destinations amongst Britons as they have lots to offer but are only a couple of hours away. However, as so many people have caught on to this property prices are increasing in these places.
Last year France saw a 15 percent rise in house prices but areas such as Champagne – Ardennes and Poitou – Charente are still good value. However Provence and Dordogne have very high prices so you are not likely to get a good deal there. Spain is ever so slightly behind with a 14 percent rise last year. Areas with the best value are non – coastal areas outside the cities of Granada, Cordoba and Jerez. Stay away from the entire Costa del Sol and Costa Brava if you are looking for a bargain holiday home as property prices have shot up there.
Gathering information and seeking professional advice is paramount before buying abroad. It is vital to speak to people who own a holiday home in the area you are interested in. It is also recommended that you visit the location out of season.
With property prices continually increasing in the UK and a boom in low – cost airlines competing to offer the cheapest air fares, it shouldn’t really take much persuading about investing in a holiday home.
Image owned by: Carla Saliba. Taken from http://www.flickr.com