Considerations to Buying a Holiday Home

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Buying a Holiday Home Abroad

There are many perks to buying a holiday home abroad. You can vacation there any time you want, without the need to worry about hotel reservations and other living expenses. You can rent it out to friends and family. You can rent the home to a local family and generate a steady monthly income. It is small wonder then that so many people in the UK have opted to buy a holiday home abroad. It’s a wise investment, even in today's economic climate.

However, it is because of the current weak economic climate that buyers must exercise some caution before purchasing any property abroad. This is not to say that people should no longer buy overseas holiday homes and other properties, but rather that they must consider some important factors before making their purchase.

Location is the key

The current and future value of a property all depends on its location. If you are planning on buying a second home then you might want to consider locations that attract healthy tourist traffic. Places such as Cape Verde are lesser known but popular choices, nonetheless, for British buyers. This is because the coastal region is perfect for a summer home, and the prices are always in the affordable range.

However, there has been a change in this trend in recent years. A survey of 430,000 holiday home owners has shown that there has been a downturn in purchases from the beginning of 2008. In 2008, there was a 22 percent drop in annual sales compared with 2007. Moreover, after the 2009 recession, there was a whopping 80 percent drop in property sales. Most of these drops were seen in locations that were not particularly popular tourist spots.

It seems Britons nowadays prefer to go the safe route when purchasing overseas properties. This is why places like Spain, Portugal, Italy and the Balearics which attract a fair number of tourists every year are now popular locations for buying holiday homes.

Types of holiday homes

There are a wide variety of holiday homes are available for purchase. You can choose anything from coastal homes and country cottages to town houses and park homes. Park homes are a distinct class of holiday homes. These can be cheap mobile homes that cost as little as £11,000 or large lodges and luxury homes that can cost up to £150,000. Ideal for the budget concious buyer.

The basic factors to consider when buying apart from price is what use you make of it when you are not staying these. Large two or three bedroom homes are great if you want to rent the place out to medium-sized local families. On the other hand, homes that sit on a large area of surrounding land may offer space for recreational activities, but remember these will require a lot of maintenance.

The purchasing of holiday homes is still popular today despite economic downturns in many countries across the world. The falling property prices in many regions has allowed many people to buy a second home at very low prices. With the right kind of investment, you can be one of the people who benefits from an otherwise unfavourable situation.

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