Where should I buy a holiday home?
There are two main groups of destinations when considering investing in a holiday home:
Firm favourites. Established markets such as Spain, France, Florida and the UK. Emerging destinations. These are countries or regions where the property market is still in its infancy and there is not a long history of foreign investment. Property prices in countries such as Montenegro and Panama are likely to be cheaper than in more established markets. Prices will rise as flight routes and foreign investment increase.
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When weighing up your options make a shortlist of possible countries and consider the following:
Do your research into the property and rental market. Internet forums are a great way to get an insider's view into buying and living in a specific country.
Look for demand. If you are buying-to-let then you want to invest in an area which is popular, but where demand outweighs supply.
Beach resorts, city centres, marina properties and holiday homes near golf resorts tend to be in constant demand.
Find out about any future development of your preferred area; will your rural retreat soon have company?
Think about the letting season. If you want year-round rental income then you'll either need to choose a location with good weather all year, or duel season potential (mountain properties for example).
If you're buying somewhere with one definite season it's a good idea to visit out of season to see if there is still anything to attract holidaymakers.
Accessibility. Choose a location that is well served by airlines, and don't be reliant upon just one - they may stop that route in the future.
Above all remember that if you are buying your second home for personal use as well then you need to choose somewhere where you want to holiday too!
