Recap of holiday home news: 7 July 2009
Although investing in overseas property can be rewarding, there are also nightmare stories of investors losing thousands.
It is reported that one in five foreign property investors runs into ‘significant difficulty’ – that’s 38,000 of us a year.
Before committing to any overseas property investment, the clear advice from this story is to seek the advice of a good lawyer.
Due to the thousands of people unable to sell their homes becoming accidental landlords, prices have been driven right down at the lower end of the market.
But there are two different sides to the rental market, with rental costs for large houses increasing due to limited supply. With the rent for the majority of this rental sector being picked up by corporate clients, this could be an attractive market for property investors.
However there is also the ugly end of the rental sector, as outlined in the article, one landlord was left in debt as a result of a bad tenant.
Although there are signs that property prices in the second home hotspot of Cornwall are dropping, properties near to water – particularly estuaries are in demand and carry a premium price tag. Homes within 1km of the coastline are about 31 per cent more expensive than homes farther from the shore. Buy something within 100m of the sea, and that premium rises to 61 per cent.
There is a valid comment on the article about the insurance implications of buying near water.
“Every new house buyer in Britain wishing to live near the water, river or sea, MUST check out your local flood-line body for risks. Extensive and flash flooding is Britain’s future. Always enquire too about your potential property’s insurance history which will affect your own premiums.”
As many overseas property owners jet off to holiday homes, be aware that when paying on your credit card for hire cars, restaurants etc. that being billed in pounds instead of the local currency could loose you money.
The retailer is supposed to clearly ask you for your preference of paying in sterling or the local currency, never accept the pounds option.
According to the telegraph, the Spanish film star Antonio Banderas has been ordered by planning chiefs to hand over part of his beachfront holiday home near Marbella on the Costa del Sol as part of a draconian campaign against ‘illegally’ built properties.
Apparently, the Hollywood star has been told part of the gardens at their holiday home is to be made public land.
Thousands of homeowners, including many Britons, risk losing their property in the region after finding themselves the victim of corrupt town hall officials who issued planning permission to builders after illegally reclassifying land.