Is it your dream to one day own a holiday home in
the sun; a beautiful house where you can escape, relax and be free of the
worries that seem to go hand in hand with every day life?
Well, you’re not alone!
A recent survey by a well known mortgage lender in the UK revealed that up to
one in three Britons not only dream about owning a home in the sun but fully
intend to make that dream a reality some day. And in the US the number of
Americans planning to one day buy that ideal second home haven is now up to
three in ten people.
Now let me ask you another question: -
If it is your dream to ‘one day’ own that beautiful home in the sun what exactly
are you waiting for?
Why wait for ‘one day’ when you can make your dream a reality today?
Here are just five simple ways that could free you up to make your ideal
property purchase today.
1) Location, Location, Location
There are still some very beautiful and highly affordable locations left in this
wonderful world of ours – destinations that are less well known, less popular
with tourists, less well developed maybe; but no less beautiful, no less
welcoming and certainly no less safe!
You just have to look a little further a field or think outside of the box and be
prepared to do some of the real estate research yourself. The most popular
destinations for second homes like Florida and Spain are very well documented
and there are literally thousands of real estate agents to help you find that
pricey holiday villa or apartment.
But if you want to be able to buy up something that doesn’t have such an
inflated and unachievable price tag then look to less well marketed and tourist
populated areas – find the next emerging market.
Did you know that property in Northern Spain is a fraction of the price of
property on the Costa del Sol, property in Northern Belize is a fraction of the
price of property in the Cayes and property in central France is a fraction of
the price of property on the Cote d’Azur for example? Did you know Croatia and
Bulgaria have beautiful summer climates and stunning beaches?
Be a proactive pioneer and seek out the most affordable and desirable holiday
home hotspots and make today’s budget go that much further.
2) Jet to Let
If you need to borrow to finance your property purchase consider buying an
apartment, villa or house that can easily be rented out during the peak season
in your dream destination. The weekly rental income you can generate from your
property purchase will pay off the extra money you had to borrow to buy your
dream home now rather than waiting until tomorrow.
Once the peak season is over and you’ve generated the highest rental yields
possible you can free up the home for a couple of weeks and you can take time
out to travel to it and enjoy an out of season break in your very own dream
overseas home.
Once the holidaymakers who let your home have helped you pay off your mortgage
you can either continue to take an income supplement from the property or refuse
to rent it out and have it all to yourself – either way, jet to let is the
latest way to afford that second home overseas.
3) Pool Resources
If you and your friends or family members all share the dream of owning a second
home overseas you could consider pooling your financial resources together to
get on the second home property ladder.
This will enable each of you to make your financial contribution go so much
further - and if you draw up a contract between you all at the start which
details who can have access to the house during which weeks of the year there
will be no possibility of arguments later on!
4) Get a Fixer-Upper
Many first time buyers in the local market consider buying a home in need of
repair, renovation or just a cosmetic overhaul. It’s a well known fact that
homes in need of some TLC get sold far cheaper than perfectly presented show
homes. Well, the same applies in every house market regardless of where in the
world you’re looking to buy.
Therefore spend a little time learning about the local real estate market in
your preferred country, find out about average costs of houses and then look for
homes priced under this ceiling…all of them will be priced down because they
require work.
Always make sure you get a survey done on any home you’re interested in to
ensure you’re fully aware of the work required then get building quotes etc.,
and cost the work up – obviously the more work you can do yourself the less
money it will cost – and then go get yourself a fixer-upper and use some of your
holiday time turning your second home into your dream home.
You will be amazed at how well you can potentially push up the value of a second
home by taking this path – in many countries overseas run down homes are
undervalued because local people have no desire to take on the work. If you put
in the effort and turn the house around, when you want to sell it you will
probably be handsomely financially rewarded!
5) Release Equity
If you have equity in your principal home – i.e., your house is worth more than
the mortgage you have on it – you could consider re-mortgaging to free up this
equity and you could then use this equity for a second home purchase.
There are some major considerations to think about before taking this path
however because it involves increasing your debt ratio. On the good side you can
often reduce your overall mortgage interest rate when you re-mortgage and you
will be putting the money you free up straight back into property.
On the bad side you will be increasing your debt and your loan will be secured
on your primary residence. This option can suit many people but you should speak
to a financial adviser before taking this path.
Hopefully these five simple ways have given you some food for thought – there
are many ways to stop putting off until tomorrow that dream that you could be
living today.
Why wait until you’re too old to enjoy a home overseas before you buy one!
Rhiannon Williamson is a freelance writer whose
many articles about buying investment property abroad have appeared in real
estate and financial publications around the world. To read her latest articles
about property investment in Cyprus visit this link:
Property in North Cyprus