Holidays are a great part of most people’s lives, and the anticipation of a week or two away is all part of the excitement.
For many people who decide that one location is better than all the rest, often the next step is to buy a second home there so they can head for it whenever the opportunity arises.
And this is especially true for those who prefer renting a villa than staying in a hotel when they go on holiday – because they know for a week or two just what having a holiday home abroad is like.
Once interested enough to pursue the idea of owning their own villa, finances need to be checked that it’s affordable, and the number of weeks it could be let out for income by an estate agent should be greeted with a healthy degree of scepticism.
After all it’s in the interests of an estate agent to sell the property, and if exaggerating the potential income secures the deal many will do it, especially in today’s economic climate.
In days gone by 30% of the villa’s valuation along with 5% closing costs were all that was needed to buy a home abroad as mortgages locally were readily available – Cypriot and Spanish banks among them – while today not manypeople will even consider trying to get a mortgage for a second home.
But once a property is bought today there are online options where it can be advertised to try and get some lets from tourists who also want a villa for a week or two – sometimes longer in the winter months if it’s the Canary Islands or Florida as the weather in Gran Canaria for example is good all year round.
Online options for villa owners to advertise and to get rentals includes both holiday-rentals.co.uk and ownersdirect.co.uk who each attracts tens of thousands of visitors looking for an overseas rental each year.
Villa agencies are often looking for good quality properties to add to their portfolios, and is an option for those looking for income from lettings, but while it does give guaranteed income the rate achieved will be lower than going direct if high occupancy levels can be achieved. Meon and James Villas are two of the UK’s leading villa holiday agencies who might be the first port of call.
The good news for those who do want to buy a second home abroad is that prices in many popular areas have fallen by 30%, with some areas of mainland Spain including both the Costa del Sol and Costa Blanca witnessing 70% drops in value over the last five years.
A buyer today is in a very strong position, and they should consider drawing up a shortlist of four or five properties they like the look of and make some low offers – and wait to see what comes back.
If a deal is possible you will be coming home to a villa holiday next time you visit your favourite holiday destination such as Gran Canaria.
