Homeowners have been warned about the need to do their research and exercise caution when buying holiday property abroad.
A second home in France, Spain or Italy is a dream for many people, but many middle-income families who achieved this dream are now facing serious problems. An investigation by the Daily Telegraph has revealed that plummeting holiday home values have caused many holiday homes to become millstones in divorce cases; instead of fighting over who gets the property, separating spouses are battling not to have to take it on.
Donegal has been named the most popular county in Ireland for those looking to purchase a holiday home.
Of the 60,000 holiday cottages for rent and second-home getaways across the Republic of Ireland, one in five are located in the north-western region, which boasts rolling hills, beautiful scenery and unspoiled natural beaches.
More than 2.3 million residents of England and Wales have second homes in which they spend more than 30 days each year, according to data from the Office for National Statistics (ONS).
Information obtained in the 2011 Census shows that 1.57 million of these properties are in a different local authority in England and Wales. In total, 11 per cent of these properties are specifically for holiday use. The vast majority (77 per cent) have their primary use for something other than holiday or work, with the main reason being the second addresses of students.
National tourism body VisitEngland is to spend more than £2 million on an advertising campaign next year, as it looks to encourage more Brits to holiday at home.
The owners of country cottages to rent have been helped by a rise in what is known as the ‘staycation’, as cash-strapped Brits scale-back their holiday plans in the difficult economic climate. However, 2012 also saw British holiday destinations benefit from a feel-good factor caused by the Jubilee and the London Olympics, and VisitEngland is keen to build on this into the next holiday season.
Yorkshire has been named the UK’s best holiday destination, which is great news for property owners with a cottage for hire in the county – or those thinking of investing in one.
The county beat off competition from Cornwall, Cumbria, Devon, Northumberland, the Peak District, Scotland and Wales, and was handed the accolade at the 19th World Travel Awards. It follows a rise of 12 per cent in the number of international holidaymakers visiting the county last year.
Country properties with a “plus one” detached cottage could offer homeowners a great opportunity to make some valuable income for retirement.
According to an article in the Daily Telegraph, a number of homeowners in popular tourist areas have found that turning their plus one into a holiday cottage for rent not only eases their mortgage burden, but is helping them build a healthy nest egg.
The Spanish government is encouraging landlords to invest in property, as it looks to get its stumbling economy back on track.
Although the economy is Europe’s fourth largest, it is struggling under the weight of enormous government and bank debt. The austerity measures and job losses that have followed have resulted in property prices dropping by 40 per cent and mortgage financing from banks has dried up.
A strong exchange rate and low fees mean that Florida is a promising place to buy holiday property, research has revealed. Banking group HSBC looked at the options available in ten different holiday hotspots worldwide, establishing just what £125,000 will get you abroad.
That amount will get you a two-bedroom apartment in Pisa, Italy or Paphos, Cyprus, but only secure one-bed accommodation in Palma de Mallorca, or Nice, France. Yet over the Atlantic in Florida, £125,000 can buy a four-bedroom house with a garden and a private pool.
Young savers are turning their back on the traditional investment markets and looking to buy-to-let property to provide themselves with financial stability in the future. According to an article in the Financial Times, young investors have been “scarred” by watching their parents and grandparents lose big chunks of their pension pots following the economic downturn.
As a result, wealth managers are now reporting that young people are moving away from equities – traditionally seen as a safe and prosperous investment sector – and looking to flats, houses and country cottages to rent for a more stable way to grow their assets.
Brits with a holiday cottage to rent may be thinking that the best the lettings market has to offer is behind them, now that autumn is on its way and the kids are back in school. However, new research suggests that the month of September is set to be a bumper one for stay-at-home holidaymakers.
Almost a quarter (23 per cent) of those responding to a survey from the Chartered Institute of Payroll Professionals (CIPP) said September was their preferred month to go on holiday, with 17 per cent of those polled plumping for August. June and July were joint-third with 13.6 per cent of the vote each.