More Britons turn to holiday home purchases
More Britons turn to holiday home purchases
The profile of the average holiday lettings investor has changed in recent years, according to recent reports.Instead of the property abroad remaining a luxury for the wealthy few, 800,000 people in the UK now own a second home abroad.
However, a new generation of overseas investors is using holiday lettings as a means of generating income.
Philip Orr, owner of overseas property company Jamijo, explained to the Belfast News Letter that many young people who can't afford to buy in England are now considering investing in property overseas.
They use the income from holiday lettings to raise money for the mortgage and hold onto the property as it increases in value.
Eventually, the house can be sold and the profit reinvested as a deposit for property in the UK, he explained.
"With the average first-time buyer now in their 30s, buying cheaper property abroad is increasingly opening up the market to the 18 to 29 demographic.," Mr Orr commented.
However, he warns that investors should know the risks associated with the market and choose a destination which is unlikely to experience decreases in property value.
22 February 2007
Print this article
