As the economic climate for holiday homes looks up, European delivery company Parcels Please warns holidaymakers to factor in additional costs.
Despite the many dreary reports surrounding the housing market, it seems that one sector is on the increase. According to estate agents Knight Frank, the second home market grew again last year, showing modest increase in figures compared to 2009.
With 245,750 homes across England already bought as holiday homes or homes to let, and many people looking to Europe for a second home out of the UK, it seems that financing a second home is still possible even during the current economic woes.
However, it has been suggested that while lenders are willing to lend money to help purchase a second home, it is likely they are specifically targeting affluent buyers. This means that if you are able to afford a second home, banks are more than likely to be willing to do business with you.
While this could be a boon for many people hoping to find an alternative to holidaying in hotels, parcel delivery experts Parcels Please have cautioned those thinking of buying a second home in Europe. A spokesperson explained: “When people first consider a holiday home, they don’t often really think about the nitty gritty of the situation.
“Deciding where to buy your home is really a crucial factor. If you choose a property abroad, it is necessary to factor many additional costs into your budget – from the price of your groceries while you’re there to the cost of keeping the house in a liveable condition all year round.”
The warning also follows news that British holiday homeowners in France are to be hit by a new tax, which could cost thousands of pounds a year. The new levy could hit up to 200,000 British holiday homeowners, but this is only one of the expenses they could find themselves subject to.
Taxes such as these are unlikely to deter those who are determined to enjoy a home away from home, and the benefits of owning a second property abroad are multi-fold.
There are a number of financing options open to people who hope to enjoy a second home abroad, including re-mortgaging UK properties, taking a second mortgage in the second country or buying into a lease back deal in a tourist development.
Experts in European parcel deliveries Parcels Please said those who can afford it should also look into ways to improve their holiday home. “Making sure you get as much benefit out of your holiday home as possible means furnishing and stocking it with everything you need. You could find that if some of your favourite creature comforts are not available in your chosen destination, you end up spending a lot of money couriering items backwards and forwards.