A Great Idea!
There was a very interesting article in the Financial Times recently with the headline “Resist the urge to invest in holiday homes abroad”. Needless to say, it attracted my immediate attention. It addressed the issue of rent guarantees and pitched that against the deductions that would be made from the rent such as management fees, letting agents’ fees, local taxes and insurance. It also addressed the matter of buyers being allowed to use the property for so many days a year but cautioned that the small print usually specified how and when these days are to be taken. In short, the author concluded that the deal neither offered a personal holiday home or an efficient investment.
When I consider the sale of holiday homes in this area and look at the less than seasonal weather this summer, I am encouraged by the high level of usage by owners of second homes in the area. The beauty about the area is that prices are still relatively modest so there is a good opportunity for growth in value, particularly when interest rates are so low. In addition this reduces the pressure on owners to get a rental return so there are no tax liabilities in relation to rental income. Because about 75% of owners live within a two hour drive of the area they can make snap decisions about when they wish to use the home without being at the mercy of airports, flights and transfers.
Having a second home in this area makes a lot of sense, excellent amenities, great sights to see, the ocean, rivers, lakes and hills, the vibrancy of the resorts, the food, the music and, of course, the people.
Start planning for next year. Contact us with your requirements.