Buying a Holiday Home
1st February 2010 - written by Jasmine Harman in
association with Towergate Connect
Jasmine Harman gives us her 5 steps to successful holiday home
buying.
I wish I had £1 for every time I was asked the question ‘where
should I buy a holiday home?’ I’d be living in the lap of
luxury in my mansion by the sea! But the answer is simple:
it’s different for everyone. I’ve come up with a few pointers
that should help you on the way to purchasing a holiday home,
whatever you’re looking for.
Why are you buying?
Your reasons for buying a holiday home or second home will have
a great impact on your choice of location and property. If
you are looking for a rental investment, you might have different
priorities than if you are just looking for a retreat for your own
use. If gaining capital is your main interest, then it’s
likely you will choose a different destination than if it were for
a retirement pad. Many people want a second home to be
‘mixed-use’ i.e. they’d like to get a bit of rental income, but
also use it for themselves and their friends and family. Of
course if the value increases with time, this is also a
bonus!! It can be difficult to find all of these elements in
equal measures, so you will need to decide what is most important
to you - it will make the process much simpler.
Where should you buy?
Access is one of the most important factors when considering
where to buy a second home. If you want somewhere to escape
to at weekends, it might be a bad idea to buy in Australia… Devon,
however might be more manageable! Look into transportation
services to the area, think about the road and rail systems and
whether low cost airlines operate in the area.
Another consideration is communication. How would you cope
in an emergency if you don’t speak the local language?
Towergate Connect offer their Overseas
Assist product as standard with all their overseas holiday home
policies. This interpreting service offers you access to
local tradespersons in the event of a crises to give you added
peace of mind.
Where you buy will depend on what kind of surroundings you are
looking for, consider the nightlife, food, scenery and so forth.
And don’t forget the weather – some places have good weather all
year round, but some have low seasons where the shops and
restaurants close down.
A technique I suggest is to narrow your search area by using
“ever decreasing circles”. Once you’ve decided on the
country, you can begin to decide on the region, then the town,
until you can pinpoint the specific location and concentrate your
search there.
What should you look for?
Write up a list of criteria that the property you are looking
for should include. Is a garden essential? Do you need
a garage? How many bedrooms? Do you want an apartment
or house? Make sure you are clear on which items are
non-negotiable and which you’d be willing to compromise on.
Also, think about the style of property. You might like the
idea of a stone-built rural farmhouse, but will it provide you with
the rental income you desire? Perhaps the maintenance will be
unmanageable? My advice is to view a property if it meets 70%
of your needs. You might be surprised by what you end up
choosing!
When is a good time to buy?
You can spend months looking at market conditions and
predictions for maximising capital growth, but first and foremost,
it has to be the right time for you. You might spend years
waiting for the ‘right time’ to buy, and then realise you’ve missed
the boat.
Many people either avoid buying in a downturn because of the
uncertainty of their investment, or simply can’t arrange the
finance, but often the most competitively priced properties can be
found at such times. It sounds obvious but historical data
shows that properties bought at the bottom of the market make the
most profit, so in a buyers market, my advice is to negotiate!
Next Steps…….
So you’ve decided why, where, what and when but what about
how?
For a major purchase like this you’ll have to do a considerable
amount of planning and budgeting in advance and research the
options open to you.
If you have ready cash, then speak to a currency expert who will
be able to advise you on the getting the best deal at the best
time.
If you’re looking at a mortgage, think about whether you need a
UK or international mortgage and the implications of this on your
income and currency exchange rates.
Getting finance agreed in principle is vital so that you know
how much you have realistically got to spend, and can make you a
more attractive buyer.
In all cases it is vital to speak to a legal advisor who can
work in your best interests, and you can relax in the knowledge
that you’ll soon have a wonderful second home.
Make sure once you have completed the purchase of your property
that you arrange the relevant insurance. Towergate Connect offer
quality Holiday Home Insurance for properties in both the UK and
overseas.
Happy house-hunting!
Towergate Connect and Jasmine Harman
Towergate Connect has
selected one of the UK's most high-profile travel celebrities,
Jasmine Harman, who is best known for her work on Channel 4's 'A
Place in the Sun - Home or Away', to contribute towards regular
news and views articles to our website.