Investment motives are a key
driver in the acquisition of
an overseas second home,
according to the results of a
landmark survey carried out by
Savills Research and Holiday-Rentals.co.uk.
This was one of the key
findings of the survey which
questioned 12,000 owners of
overseas property who use
Holiday-Rentals.co.uk to
advertise their properties.
Lucian Cook Director Savills
research comments, “Over half
of all respondents cited
investment as the main reason
for purchase with rental
potential being the most
important financial
consideration influencing
their purchase. With this in
mind purchasers are
increasingly looking further
a-field to emerging coastal
destinations where entry into
the overseas homeownership
market currently is more
affordable. This
investment into emerging
holiday destinations has gone
same way towards breaking the
stronghold that France and
Spain have had over overseas
investors. For many it has
allowed them to benefit from
strong capital growth
associated with these
developments as more popular
and accessible tourist
destinations.
Alexis de Belloy, Managing
Director Holiday-Rentals.co.uk,
adds: “Since 2004, the number
of properties listed on
Holiday-Rentals.co.uk has
increased by over 220%, with a
particularly marked increase
in emerging tourist
destinations such as Bulgaria,
Croatia and Morocco. Provided
sufficient research in to the
location is carried out,
rentals can make a significant
contribution towards costs,
for example over half of
Holiday-Rentals.co.uk clients
successfully book at least 17
weeks per year and 86% at
least ten weeks.”
Cook again, “The report
suggests that some 49% of
respondents are funding their
acquisitions through mortgages
and are exposed to changes in
occupancy rates and achievable
weekly rental levels.
Nonetheless capital growth has
played a fundamental part in
the viability of these
investments”.