News Europe Cash rich property investors looking to buy discounted second homes in traditional hotspots Cash rich property investors looking to buy discounted second homes in traditional hotspots |
| Wednesday, 10 March 2010 | |
 Overseas real estate buyers The overseas second home market in 2010 is likely to be characterised by cash rich, lifestyle property investors who will take advantage of lower prices in traditional holiday hotspots, according to a new report. The research found that it has been buyers with a higher disposable income, and who are therefore less mortgage reliant, who are buying. They are taking advantage of price decreases of up to 30% even in the most sought after locations and are therefore able to invest in such high end properties at a discount. ‘In 2010, the overseas second home market will be characterised by cash rich, lifestyle buyers benefiting from lower prices in traditional, established holiday home hotspots,’ said Charles Weston-Baker, Head of Savills International. Analysts point out that whilst UK overseas home ownership has doubled since 2001 recent global recessionary trends have seen take up levels dramatically slow. Factors such as fewer overseas holidays, reduced leisure spend capacity and financing availability, unfavourable exchange rates and declining house prices have impacted second home purchasing activity. But a fifth of all respondents reported that they are considering or planning additional holiday property purchases in the future, demonstrating that despite the climate, the attraction of overseas investments has not disappeared. However, it will be essential for market conditions and mortgage availability to improve, in order to support any volume of future purchasing activity, they add. When asked about where they would intend to expand their property portfolio, respondents named the following top ten destinations, including traditional favourites France, Spain, Portugal, the US, Italy, Greece and Cyprus, followed by Morocco, Brazil and Turkey respectively. ‘Traditional holiday hotspots are among the top performing destinations on our site, with places like the Cote d’Azur, Malaga Province, the Balearics and the Algarve all being great options for reliable rental returns,’ explained Courtney Wylie, General Manager at HomeAway Holiday-Rentals. ‘For anyone hoping to rent, it is essential to research the tourist market first, particularly when considering emerging markets. Access to the destination should also be considered. For example, reliance on one airline is not ideal as route cancellations could have a big impact on bookings,’ she added.
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