2010 Holiday Home Predictions – Just Don’t Forget The Insurance
As UK residents are emerging from the gloomy winter and spring is just around the corner the good news for those with the capital is that there may be the opportunity to grab a deal this year on holiday homes. The recent property slump abroad has led to prices falling for foreign properties but buyers should be acutely aware before jumping on the plane to find a place in the sun that there are other costs involved in having a sun drenched villa, including holiday home insurance.
As some industry commentators are pointing out that government tax rules may also change this year, some of these bargains become a little less appealing.
The trend of falling holiday home prices is evident in some parts of the world. In South Africa for example, property experts are surmising that prices for homes in small coastal towns and villages will remain low and even fall in the coming year. The prices however seem extremely localised as properties in some of South Africa’s cities are actually increasing as competition from holidaymakers, city residents and businessmen combines to bolster property values.
In contrast, the popularity of the Balearic Islands amongst holiday home buyers is expected to increase in 2010. Reasons for this are diverse, during 2009 sales in the Balearics fell by around thirty five percent but nearer the end of the year, German buyers bolstered the market. It is believed that throughout 2010 house prices will actually increase for a number of reasons.
The Balearics are extremely popular with the rich and famous and those with the capital are happy to emulate stars such as Michael Douglas, Boris Becker and Claudia Schiffer. As such those with second properties on the islands will be advised to ensure they have holiday home insurance as their property could be worth considerably more by the time the year’s out, particularly as many of the Balearics have laws ensuring limited development opportunities.
For those with holiday homes this could be a good year as the global economic conditions seem to be easing somewhat. Equally those considering buying a property abroad may be able to find themselves a bargain and an investment opportunity as prices bottom out and start to climb again.
