We all understand the need to own your own home, it makes financial sense, and over the long term, the asset appreciates, giving you a good return on your investment. Once a person has achieved this, it is often the next step to buy a second home, usually somewhere the person prefers to spend their downtime. Ideal locations include South East Asia, with Thailand and Malaysia both popular countries for European retired people to buy a second home.
More often than not, a couple who own a holiday home in Thailand, for example, would only spend a few months a year staying in the property, and by enlisting the help of a reputable property management company, the home can be rented out when not in use. The maintenance would also be taken care of by the management company, leaving the owner without any responsibilities. Tenants would be carefully screened, and if the property was in a good location, premium rent can be expected. If you are thinking of making a foreign investment, JLL’s Investor has some informative articles covering all aspects of foreign investment, both private and commercial.
All property appreciates in value, it is just a question of how much, and by carefully selecting the location, you can make a sound investment. If a person bought a condominium in the resort town of Hua Hin, in Thailand, for example, some ten or fifteen years ago, the value would have tripled in that time. The resort, or area the property is located very much determines the value, and if the development is well maintained, the value will increase steadily, as more and more people move into the area. One thing to look for is adequate amenities and a clean environment, and if the developer is established, the project should be successful.
A cost-effective Way to holiday
Owning your own holiday home makes financial sense, providing you are happy to stay in one particular location year after year, and most people do have a favourite place they would like to be when they have free time. Of course, you are tying up a considerable amount of money in a foreign country, so make sure you understand the local laws, and use a reliable lawyer to oversee the legalities.
A Secure Future
With fluctuating stocks and shares, and volatile money markets, real estate seems like a more secure proposition, and with the future in mind, a holiday home looks an ideal way to give a person choices in later life. If one chooses, one could sell up at home and move to the holiday home, full time, taking an annual holiday to visit family and friends back home. The cost of living in the west is another reason why semi-retired people are buying property abroad, and with equity release programs allowing British homeowners to take a share of their equity in a tax free lump sum, many are using this to buy a holiday home in paradise.