Does your summer holiday seem like a distant memory? Are you already longing for next year’s break? We talked to four people who invested in second properties to beat those winter blues.
“The house was billed as a two-bedroom but it actually has a third room which can be used as a guest bedroom. We have a lovely pool shared by 20 properties and the area is fantastic. We bought it for family holidays and rent it to close friends.
“We saw an advert in our local paper offering inspection tours to the Alicante area. We signed up and went away for four days to visit different properties.
“We had to wait for the house to be built but now my partner, my son and I go there about four times a year. It’s great with the cheap flights available — we can pay as little as £40 return including taxes.”
But there have been a few hiccups along the way, David explains.
“I found the process of buying abroad quite straightforward on paper. But like any other venture there can be problems. For example, the builder asked for a 50 per cent deposit before starting to build the house. We arranged the exact amount without realising that the bank would charge us for processing this. Then the builder wouldn’t begin building until the difference cleared. Once we’d signed up, the company which showed us the properties wasn’t really involved any further and we had to deal with the builder direct.
“The company did put us in touch with a local solicitor though, which is pretty standard when buying abroad. He organised a bank account for us and was our fiscal representative, setting up bills and direct debits. We didn’t have to employ a British solicitor as everything was done in Spain.”
David continues, “But there were delays. The Spanish are notorious for being slow and the process dragged on a bit. We were told the house would be ready in October, but it wasn’t ready until the following June.
“It has taken about five years for the area to become properly developed and it is beautiful now but, with hindsight, next time I would probably buy in a more established area.
“There are so many advantages of having a second home. In the winter months you can just get up and go, escape from the rat race and relax. Also, the value has shot up since I bought. I paid £46,000 in 2000 and now they’re selling for around 190,000 euros (£130,000).”
But selling up isn’t something David is considering at the moment.
“If you’re not resident in the country you sell in, you have to pay 35 per cent tax,” he explains. “And I think the market has peaked in Spain — the prices are so high now that I’d probably advise new buyers to look elsewhere.
“We still like to take holidays other places and we don’t feel we always have to go to Alicante. But it is fantastic having our own place in the sun to escape to.”
Buying a holiday home abroad remains a popular choice but British buyers are also looking for properties closer to home. When Robert and Lesley Davis decided to invest, destinations like France and Spain didn’t appeal.They researched other areas and found that Poole, in Dorset, fitted the bill. Consistently above average levels of sunshine, Europe’s largest natural harbour, and miles of golden sandy beaches make Poole a firm favourite for those seeking peace, relaxation and a home from home.
Robert explains, “We have been actively looking for a number of years and just couldn’t find a place we could call our perfect holiday home. Then we visited Poole Quarter and we knew we’d finally found exactly what we were looking for.”
Poole Quarter, a Crest Nicholson development, is the result of a comprehensive regeneration of an area close to the harbour. The couple loved the contemporary design of the buildings, including the steel and glass balconies and low-maintenance, chic interiors.
‘‘We bought off plan, without seeing our finished apartment but we’re confident that buying early on in the development will ensure the best capital growth.“The development is a modern mix of apartments, penthouses and townhouses so it has a real community feel to it. It’s also within walking distance of Poole town centre. And London is only a couple of hours on the train so we have the escape of a seaside pad and the big city within reach.”
He continues, “We really look forward to going to our home from home. Poole’s harbour area is excellent for fishing, sailing and kite surfing, whereas those who want to take it easy can stroll along the quayside, where there’s a great range of bars, cafés and restaurants. There’s also three miles of glorious golden beaches, part of which is the exclusive Sandbanks where you can indulge in celebrity spotting during the summer!”
For further information contact the 0870 751 0476 or visit
www.poolequarter.co.uk
According to a recent survey, up to 45 per cent of Brits dream of retiring overseas. This doesn’t just apply to the over 60s. Low UK interest rates and high levels of ambition mean 42 per cent of people in their 40s are now actively looking to quit the rat race.One Scot who’d love to join the exotic exodus is Ann Breslin from Glasgow, who has just bought a two-bedroom apartment at the Garden of Eden resort on Bulgaria’s Black Sea coast.
“I have always wanted to buy a property abroad,” says Ann, a project manager for a Glasgow computer company. “I love jetting off on holiday but recently I’ve found that holidaying in hotels is becoming expensive and, if you’re away for any length of time, even the most luxurious hotel room can be restrictive.”
Interestingly, Ann took her first step into buying property without ever having visited Bulgaria.
“I’d never been to the country when I first reserved a property at Garden of Eden. But I spoke to people who have bought there, I read a lot about the country and I researched it on the Internet.
“I thought about buying a holiday home in Spain or Greece but prices there are now very high, as is the cost of living, while in Bulgaria you can still have a lovely dinner out for just a few pounds.
“The old historic towns in Bulgaria are fascinating and the miles and miles of beaches along the Black Sea coast look fabulous and are uncrowded,” Ann explains.
“I paid around £63,000 for my two-bedroom two-bathroom apartment, which is due for completion in July 2006, and already I could sell this on for a good profit. The facilities are great — seven swimming pools, a gym, tennis courts, a spa, a small boutique hotel, a private beach and marina.“It’ll be so nice to be able to sleep late without worrying about holding the maid back, and to make myself lunch to eat on the balcony.”
With the country set to join the EU in 2007, the property market is booming as investors and holiday home buyers take advantage of the attractive low property prices. Price increases of between 25 per cent and 100 per cent were reported last year but homes are still affordable.
Ann plans to rent her apartment to friends and family — and with five brothers and two sisters, the bookings are already pouring in. But she also hopes to escape to her Bulgarian bolthole for long stays.
“I’d like to go out and live in the apartment for a year, try and learn the language and enjoy the Bulgarian lifestyle, then if this works out, I’d love to retire there,” she says. “But no matter how much time I spend in the property, I’m confident it will remain a great investment.”
For further information phone 08454 669 988 or visit the website
www.edendevelopments.co.uk
Derek Donnelly has a driving ambition. The Glasgow-born taxi driver aims to buy properties in the Orlando area of Florida, and use the rental from these homes to fund a new business — and a new life — in the USA. Having mastered The Knowledge to become a London black cab driver, Derek is now becoming knowledgeable about the overseas property market.
Derek explains, “As well as a growing number of Brits buying there, since 9/11 an increasing number of Americans are homing in on Florida rather than travelling abroad, which means property values here are constantly on the up.
“The five-bedroom villa I’ve bought in Florida isn’t due to be completed till later this year, but already it’s gone up in value by around 60,000 dollars.”
Derek had only been to Florida once on holiday when he decided to invest in property there, after visiting an overseas property exhibition.
“One of the first stands I visited was Coldwell Banker Team Realty, an estate agency from Davenport in Florida, and I really liked the choice of properties they had on offer, so I arranged to go out to the USA on an inspection visit in March.
“I’d decided to look for a four-bedroom villa and one of Coldwell’s estate agents had agreed to take me around to look at lots of different properties. But, on the first day, I bought the second property I saw. Although it was bigger and more expensive than I’d planned, as soon as I saw the location and design of the showhome, I knew this was the villa I had to buy.”
Derek paid just over $280,000 (£154,000 approx) — $60,000 more than he’d originally budgeted — for a luxury five-bedroom villa at a development near Orlando called Sandy Ridge.
“I really feel I’ve struck gold with this villa,” he smiles. “The property is on a corner plot and the setting is amazing, with views over a lake and woodland. Also, the location of Sandy Ridge is ideal, just 10 minutes from Disney and all the major attractions in
Orlando. And it’s only a couple of minutes from the Champions Gate golf course, designed by Greg Norman.“Because the pound is so strong against the dollar, I’ve made savings on the payments for the property. When I first transferred money over to the US to pay for the deposit on the villa I was getting $1.75 to the pound but, for my next payment, the rate had risen to $1.90. This means my $280,000 villa will only have cost me around £160,000 including the full furniture package — a lot less than my three-bedroom home in the UK, and I’m getting so much more property for my money — a huge five-bedroom, four-bathroom villa with its own swimming pool.
“The rental market is so good in Florida that I’m sure the villa will pay for itself and, over the next 12 years or so, my plan is to buy another four or five villas. One day I’d like to buy a business in Florida, maybe a pub, and that will be my life in the sun sorted!
“I have friends and family in different states in America but for me Florida is perfect — great weather and loads of amenities.”
For further information about Sandy Ridge, or to arrange an inspection visit, freephone Coldwell Banker Team Realty on 0871 780 1180 or visit the website
www.coldwellbankerteamrealty.com
Reports by Nan Ensor and Dawn Donaghey.
Before you make a move, seek good advice from the experts says Mike Hayes, editor of Homes Overseas magazine.
Do your homework first. Don’t visit the destination looking for property without knowledge of how the buying system works.Be sure about your reasons for buying — are you looking for a holiday home, an investment or somewhere to retire to? Try renting first — it is an ideal way of ensuring you like an area before you commit to a purchase.Don’t buy the first property you see — view at least three or four properties. When you’ve decided on one, visit several times and at different times of the day and night.Be prepared to buy off-plan — you might have to wait for it but at least you secure the buying price.Understand the full costs of buying and maintaining your property before you sign anything.
Use an English-speaking lawyer to check your purchase contract and guide you through complex issues. Don’t bust your budget — decide on the highest figure you can afford and stick to it.Look for areas that aren’t yet hot spots.
