UK Holiday Homes
Holidaying in the UK has recently seen a revival as green minded holidaymakers avoid flying abroad. What with all the hassles of flying due to the terrorists, many people can no longer be bothered. Demand for holiday homes in places like Cornwall, Devon and the Lake District have pushed prices up by about 150% in the last 5 years. If you do buy a second home in these areas, expect resentment from the locals who simply cant afford to buy a home.
While the holiday rental market can deliver decent returns it can also be a tricky prospect. There are currently 400,000 'second homes' in the UK and 60% of homes sold in parts of Cornwall are 'second homes'. 4 bed holiday homes in popular areas can easily command rents of more than £800+ per week during july/august. At first this seems an attractive prospect, if your monthly mortgage repayments are say £1000. But due to dead periods, year round income is unlikely. Most experts we spoke to suggest 20 weeks per year of occupancy is desirable.
People will always want the most desirable properties and the UK property market is one of the safest to invest in. So maybe it is the right location for you to buy a holiday home. London has long been a popular destination for multiple home owners and with the 2012 Olympics there is going to be great rental demand.