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Holiday Home Sell-Off Forecast

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More than half of the Britons who own holiday homes in the eurozone are expected to sell up in 2011, after being hit by falling rental income and currency volatility.

Research by Currencies. co.uk, a foreign exchange broker, has found that more than a third of homeowners who let out a property in the eurozone last year saw lower occupancy rates and rental incomes than they had expected – prompting 56 per cent to consider selling in the next 12 months.

With British owners of such holiday homes numbering more than 400,000, according to Mintel, hundreds of thousands of properties in France, Spain and Italy are forecast to come on to the market. Agent Knight Frank estimates that the current total value of British-owned properties in the eurozone is £47.5bn.

http://www.ft.com/cms/s/2/09923922-1a8a-11e0-b100-00144feab49a.html#ixzz1AROZNrBm

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Am just back from a fortnight in Tenerife.

Thought about renting an apartment but the one I looked at on the net woman wanted £2000 for over the period so I left it. Didn't pursue any others.

Booked a two bedroom apartment thru Alpha Rooms instead for <£650. Was comfortable enough albeit with a bit of background noise being in a complex.

Made a point of walking down to the one we had considered (its address was up on Owners Direct) to have a look.

It was empty curtains drawn shutters down........

On another note the resorts were much quieter than I expected and whilst the flight going out (and back) was full. Seems a lot of businesses (Brit bars and restaurants) have folded in the 4 years since I last visited.

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The two couples I know who boughta "property" in France both now openly admit it was a mistake and will sell up when they can afford to take the loss. They partly hope prices will come back but are making more practical plans to save up sufficient cash here to clear the Euro mortgages.

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Am just back from a fortnight in Tenerife.

Thought about renting an apartment but the one I looked at on the net woman wanted £2000 for over the period so I left it. Didn't pursue any others.

Booked a two bedroom apartment thru Alpha Rooms instead for <£650. Was comfortable enough albeit with a bit of background noise being in a complex.

Made a point of walking down to the one we had considered (its address was up on Owners Direct) to have a look.

It was empty curtains drawn shutters down........

That sounds typical property bubble mentality. Not only is my house worth such and such but my holiday home can only be let out for 2 grand - not a penny less.

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I've been saying this for a long time.

Anyone who is thinking of buying a villa to rent out - because there are loads of people willing to holiday in Spain or wherever - are in for a suprise when they find out that the people who want to holiday there all have homes of their own.

If 10% of holidayers have their own holiday homes - it effectively kills off the supply/demand side of things - soo many for rent and nobody wanting to stay.

Someone should tell those 56% that they will never sell there holiday homes this year.

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Am just back from a fortnight in Tenerife.

Thought about renting an apartment but the one I looked at on the net woman wanted £2000 for over the period so I left it. Didn't pursue any others.

Booked a two bedroom apartment thru Alpha Rooms instead for <£650. Was comfortable enough albeit with a bit of background noise being in a complex.

Made a point of walking down to the one we had considered (its address was up on Owners Direct) to have a look.

It was empty curtains drawn shutters down........

On another note the resorts were much quieter than I expected and whilst the flight going out (and back) was full. Seems a lot of businesses (Brit bars and restaurants) have folded in the 4 years since I last visited.

this is the trouble with bail outs for borrowers....they arent forced to monetise their assets, and taxpayers money can go to keeping assets going to waste, when they should be backin the market and being used for what they were made for.

Meanwhile, not only is there waste, but the prices dont drop, therefore the bailouts remain at higher and higher levels.

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I've been saying this for a long time.

Anyone who is thinking of buying a villa to rent out - because there are loads of people willing to holiday in Spain or wherever - are in for a suprise when they find out that the people who want to holiday there all have homes of their own.

If 10% of holidayers have their own holiday homes - it effectively kills off the supply/demand side of things - soo many for rent and nobody wanting to stay.

Someone should tell those 56% that they will never sell there holiday homes this year.

Aye been saying the same thing for years !!

It is so simple I don't know why people don't understand it ?!!

Of course an amazing house in an amazing location will always be busy. However to get that you need to stick in a pile of cash.

I don't see the point of a holiday home abroad unless you have serious cash just lying about doing nothing. If you have than then I can see the point. As for those buying homes abroad with mortgages ?! Mental IMO. You will end up paying 2-3 times back dependent on the interest rate.

So you buy a 'cheap' wee villa for 150k. It may end up costing you 300k+ plus maintenence/fees/taxes etc....

Could easily cost you 500k over the 25 years of paying off the mortgage.

How many amazing holidays to different locations could you have for 500k over 25 years. :blink:

I just think most people dont think about these things.

Having said that I am quite partial to the idea of perhaps one day getting a wee place up North in Scotland. Only if bought in cash though. Just leave it available for all friends and family and use it when I want. Would need to be within hour and a half though.

I can see the attraction of that. However an apartment in Cyprus ?! Beyond me.

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In the SW there's several holiday cottage sites up for sale, plus single holiday cottages up for sale too.

That's good. Wonder if rental rates will come down this year? You get the impression a lot of people buy these homes in the naive expectation of renting them out for most of the year.

There's a property (small flat over a shop) in Lyme Regis I first saw up for sale in summer 2007. Orig. AP something like £132,000.

Since then it's gone to auction twice, failed both times to sell, been reduced to OIRO £99,950, been under offer for months - now no longer U/O.

Is this a record?

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....noticed EJ are having a sale.....1st time I have seen them advertise on TV....very cheap prices for example looked and saw £60 return flights to europe, car hire in EU looking at 35 euros for a week......bargain, lower demand so hence prices are low. ;)

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Am just back from a fortnight in Tenerife.

...

On another note the resorts were much quieter than I expected and whilst the flight going out (and back) was full. Seems a lot of businesses (Brit bars and restaurants) have folded in the 4 years since I last visited.

We've had a couple of winter breaks in Tenerife over the last few years. On the Tenerife forums the owners of bars and eateries have been complaining long and hard about the growing tendency for holidaymakers to fix the cost of their hol in advance by opting for all inclusive deals at their hotels or holiday complexes. There's no need for them to trawl restaurants looking for a good one when they get 'free' food and booze at their hotel. This tendancy is also something that puts owners of holiday lets at a disadvantage. The 'all inclusive' culture is also complained about in places like Cyprus to.

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Aye been saying the same thing for years !!

It is so simple I don't know why people don't understand it ?!!

Of course an amazing house in an amazing location will always be busy. However to get that you need to stick in a pile of cash.

I don't see the point of a holiday home abroad unless you have serious cash just lying about doing nothing. If you have than then I can see the point. As for those buying homes abroad with mortgages ?! Mental IMO. You will end up paying 2-3 times back dependent on the interest rate.

So you buy a 'cheap' wee villa for 150k. It may end up costing you 300k+ plus maintenence/fees/taxes etc....

Could easily cost you 500k over the 25 years of paying off the mortgage.

How many amazing holidays to different locations could you have for 500k over 25 years. :blink:

I just think most people dont think about these things.

Having said that I am quite partial to the idea of perhaps one day getting a wee place up North in Scotland. Only if bought in cash though. Just leave it available for all friends and family and use it when I want. Would need to be within hour and a half though.

I can see the attraction of that. However an apartment in Cyprus ?! Beyond me.

we have enough holiday homes up here allready thx, stay in a hotel or camper van please and give the locals a chance to buy local houses on local wages, not another bloody londoner or early retired teacher or social worker on index linked pensions. We have enough of them allready.

I can never ever understand the mentality of a holiday home, it realy is about property speculation because it is wayyy cheaper to just stay in a hotel or campsite. Im off to dysney land paris this year , going to stay in apartment in cheap paris hotel ie 160 quid for the week for 3 of us, the following week im going to spain just booked 300 pound all inclusive hotel for the 3 of us. Holiday homes were only ever about property speculation, ruining rural communities was just an afterthought.

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we have enough holiday homes up here allready thx, stay in a hotel or camper van please and give the locals a chance to buy local houses on local wages, not another bloody londoner or early retired teacher or social worker on index linked pensions. We have enough of them allready.

I can never ever understand the mentality of a holiday home, it realy is about property speculation because it is wayyy cheaper to just stay in a hotel or campsite. Im off to dysney land paris this year , going to stay in apartment in cheap paris hotel ie 160 quid for the week for 3 of us, the following week im going to spain just booked 300 pound all inclusive hotel for the 3 of us. Holiday homes were only ever about property speculation, ruining rural communities was just an afterthought.

...good for you, I stayed on this campsite close to Paris once, clean, nicely furnished and comfy static caravan good pool onsite...easy cheap transport into the city.......some of the best holidays are the ones that cost a little and mean a lot....off the beaten track...;)

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we have enough holiday homes up here allready thx, stay in a hotel or camper van please and give the locals a chance to buy local houses on local wages, not another bloody londoner or early retired teacher or social worker on index linked pensions. We have enough of them allready.

I can never ever understand the mentality of a holiday home, it realy is about property speculation because it is wayyy cheaper to just stay in a hotel or campsite. Im off to dysney land paris this year , going to stay in apartment in cheap paris hotel ie 160 quid for the week for 3 of us, the following week im going to spain just booked 300 pound all inclusive hotel for the 3 of us. Holiday homes were only ever about property speculation, ruining rural communities was just an afterthought.

I wouldn't think about buying one unless it was in cash and the price was reasonable, and if that was the case then they would also be affordable to local people so there would not be an issue. :D

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this is the future.of the people I know who went to Spain this summer-not many I ahsten to add,all went for all inclusives unless they owned their own place tehre.

couple I know have a pad in tenerie and they say that all the local restaurants are getting killed by this trend.holiday makers are still going to bars but only after they've got wasted in their hotels.they say the big hotels all have to offer it or noone would book them.

All inclusive is the only option unless you have money to burn.

I used to go self catering and dine out every night for a bit variety but then prices started going crazy, especially at those spar shops where it costs a euro for a small bottle of water. It was cheaper to drink alcohol all day. Of course the "all inc" school dinners set up is off puting as well.

Now we have got a touring caravan and stay in this country, probably cheaper to eat out here now.

Does away with the airport hassle/waiting/ripoff too!

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All inclusive is the only option unless you have money to burn.

I used to go self catering and dine out every night for a bit variety but then prices started going crazy, especially at those spar shops where it costs a euro for a small bottle of water. It was cheaper to drink alcohol all day. Of course the "all inc" school dinners set up is off puting as well.

Now we have got a touring caravan and stay in this country, probably cheaper to eat out here now.

Does away with the airport hassle/waiting/ripoff too!

All inclusive has its place.....but personally I would hate to be bunched up with a whole load of people with a wrist band queuing at the bar for their soft drinks beer and wine.....look, be different be forward thinking and open to what the real world has to offer, something new something far better and something for the skillful and daring that will exceed anything the communal garden or middle of the road do, don't do what others say is best to do, be ahead of the curve......benefit from the fallback that is well and truly overdue. ;)

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I can't understand why you would want a holiday home unless:

a) it's not a holiday home but you plan to live there.

B) your wife/husband/you are from that place or have a connection to the place.

c) you are extremely rich and have many in the right places.

I have 2 Aunts, both with holiday homes in Spain - nowhere near each other.

They have been struggling to find people to rent them - in one case, half the villa complex is for holiday lets and nobody stays there. It's a bit sad.

I guess that holiday homes are only as good as the utility you get from them - there is no capital appreciation when everyone who wants one has one.

Personally, as a previous commenter said - for £500,000 pounds you can have a lot of great holidays every year until you die - I couldn't go to the same place every year.

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this is the future.of the people I know who went to Spain this summer-not many I ahsten to add,all went for all inclusives unless they owned their own place tehre.

couple I know have a pad in tenerie and they say that all the local restaurants are getting killed by this trend.holiday makers are still going to bars but only after they've got wasted in their hotels.they say the big hotels all have to offer it or noone would book them.

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...forgetting the weather.......why would anyone want to go to another country to be amongst others that you live with every day.......the whole reason I would have thought to venture into foreign climes is to take advantage of different and new cultures, take yourself away from the strains and stresses of everyday life and absorb the differences and meanings of what is new and what can be learned form others that are looking in and smiling from outside the box. ;)

Edited by winkie

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Anybody who buys a property to rent out is totally exposed to any reduction in demand as they have to compete against people who bought decades ago and can rent out for nominal amounts.

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Anybody who buys a property to rent out is totally exposed to any reduction in demand as they have to compete against people who bought decades ago and can rent out for nominal amounts.

If you bought a place for a holiday home why would you want to rent it out to strangers?....you have your clothes in the wardrobes, why would you want anyone to sleep in your bed?

If it was bought it for the right price, and for the right reasons....a holiday place is for holidays, not a money making machine......you buy a home for what it can do for you not on how much it can make you....... ;)

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More than half of the Britons who own holiday homes in the eurozone are expected to sell up in 2011, after being hit by falling rental income and currency volatility.

I lost track of how many foreign holiday homes one of the Chuckle Brothers is now trying to unload onto the market. Also his own UK home. Daily Mail story link below, which you'd have to paste in.

Bound to be many other people of middle age, worrying about their finances, property values in general, and looking to cash in. Crashtastic.

http://www.dailymail.co.uk/property/article-1343656/This-Chuckle-Brother-laughing--sold-built-Kefalonia.html

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I wonder if there is an opportunity here to get a more typical non holiday rental period with one of these, 6 months say. Live on the cheap outside the uk for a while. Is it still expensive to live in the eurozone, I've not been watching the exchange rates.

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---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The holiday home rental pitch has been a salesperson dream over the last few years and made them a fortune in sales, money was made in the past from the rental market, but as more and more people have bought with the belief that the rent will pay the mortgage the market has been saturated and people are finding it harder to get renters and to pay the mortgage. People who bought outright are in a better situation as in some cases they do not need to rent and for some it is a bonus if they can.

Edited by awaytogo

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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