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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 afield 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!
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