Two-thirds of people buying a second home here or a place in the sun are doing so without the need for a mortgage
How, you might ask do they manage this? According to the survey by www.schofields.ltd.uk, 77% had enough of their own savings and resources to hand to meet the price, with the remainder borrowing from friends and family or joining their resources with other buyers in order to do the deal.
The bulk, we’re guessing are cash-rich, equity-rich baby-boomers looking for a rental investment , a holiday home or a bolt hole in sunnier climes.
Interestingly, most seem to be looking for a property to develop – 63%, said theirs was a ‘project purchase’ and the average price paid was £135,750.
The top five countries for purchasers were:
- UK – 21%
- Spain – 19%
- France – 17%
- Portugal – 15%
- Italy – 12%
Phil Schofield of Schofields Holiday Home Insurance said:
“Buying a holiday home is a real investment, with many owners looking to buy a property as a means of investing their cash in something which will see them enjoy a good return in the years to come. The market has been really promising of late, offering a great opportunity to get on the ladder abroad, receive a regular income and then generate a profit upon the future sale.
This is particularly the case with ‘project purchases’, where you can get a beautiful house with great potential for a really good deal. Having said that, I imagine for the majority of Brits having £135,750 to hand is rather appealing – and sadly not quite what’s on the bank statements every month”