Holiday-Rentals.co.uk - Buying property abroad
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Year:22 September 2004 - The Independent
"So you want to buy...a holiday home overseas"
A freater range of properties means greater preparation. Marcelle Speller of www.holiday-rentals.co.uk has this advice. "In some areas there is more supply that demand as a lot of people are now doing the same thing. Make sure you are the edge and if, you are serious about renting, try harder to make your property more appealing. Well-presented properties with quality furnishings in good locations always rent well".
22 August 2004 - The Sunday Times
"Don't count on a villa paying for itself"
Of course, if you have a management company, it will do the admin, which
means more costs. Some charge 25% of the rent, others up to 35%, depending
on what you ask for.
You can always go it alone, as retired City analyst Ian Smith has done. "I bought in Catalonia because I like the idea of being able to drive to a holiday property, and the south of Spain is a bit far," says Smith, who lives in Stevenage and admits he didn't really know Catalonia before spending £540,000 last October on Villa Florisa, a four-bedroom villa with pool, within walking distance of the beach at St Antoni de Calonge. It's now marketed by Holiday-rentals.co.uk. "They only charge £189 a year, and clients e-mail you directly," he says. "You have to handle everything, which means that unless you live there, you need a good caretaker. Luckily I inherited one with the house, who charges about £3,000 a year."
While this system might make some seize up with dread, it suits Smith. "I've rented it out for June, July, August and September this year. I think I'll make £25,000 during the summer months. I might make a little bit of profit, but by the time I've paid tax, housekeeping and fuel costs, I suspect I won't." He doesn't think he'll get there himself until mid-September, "at which point I will put in central heating and refurbish the kitchen and bathrooms".
You can always go it alone, as retired City analyst Ian Smith has done. "I bought in Catalonia because I like the idea of being able to drive to a holiday property, and the south of Spain is a bit far," says Smith, who lives in Stevenage and admits he didn't really know Catalonia before spending £540,000 last October on Villa Florisa, a four-bedroom villa with pool, within walking distance of the beach at St Antoni de Calonge. It's now marketed by Holiday-rentals.co.uk. "They only charge £189 a year, and clients e-mail you directly," he says. "You have to handle everything, which means that unless you live there, you need a good caretaker. Luckily I inherited one with the house, who charges about £3,000 a year."
While this system might make some seize up with dread, it suits Smith. "I've rented it out for June, July, August and September this year. I think I'll make £25,000 during the summer months. I might make a little bit of profit, but by the time I've paid tax, housekeeping and fuel costs, I suspect I won't." He doesn't think he'll get there himself until mid-September, "at which point I will put in central heating and refurbish the kitchen and bathrooms".
August 2004 - A place in the sun magazine
"Nice little earners - buying-to-let"
Marcelle Speller, who runs www.holiday-rentals.co.uk, says: "For some, letting is a purely financial investment. For others it's a dream home that they don't mind sharing to help with running costs."
Either way, there's no doubt that buying-to-let is on the rise. And, when you get the formula right, it can be a lucrative business. Over 50 per cent of UK holidaymakers now turn their back on package holidays, and they all need places to stay.
Best-bet countries
But how do you know where to but? First, pick a country you already know and love because it will give you a head start in your property search. "What's more, is you can tell your renters about where to eat and so on, with genuine enthusiasm," says Marcelle Speller. At the same time, you need to visit country out of season to get a complete picture of the place and what it has to offer. Next, pick a country that already enjoys a good number of UK visitors, but isn't over run. Like any market, rentals have a saturation point. Once it's reached, rents cant be sustained and start to nose-dive.
Golden rules of buy-to-let:
My buy-to-let dream:
Anne Sadler owns a two-bedroom secluded villa with pool and gardens in the Algarve, which she lets through www.holiday-rentals.co.uk (property 6589).
"Two years ago I decided I wanted to buy in Portugal. I looked on the Internet, flew out, and within two days I'd put down a deposit. I'm a bit impulsive, but I had a gut feeling that I'd found the right house for us. At first we resisted letting it, but the rent enables us to pay for the maintenance of the large gardens with pool. We've been lucky with our guests. I always talk to them first, so it's not a faceless property - people know it's out home. It's fully equipped with everything you could possibly want to use. Last year it was let 27 weeks of the year, but we always keep it for ourselves at Christmas and Easter and a last minute break at the end of the summer. Our plan is to move out there when the children have finished school in eight years - but I don't know if we can hold out that long. My husband would go tomorrow! I'd recommend buy-to-let in the UK - except you can always do it yourself. Buy-to-let can be lucrative if you get the right formula. Gone are the days of holidays in tower block hotels and the sun beds around a communal pool. People want something different, and I think our house fits the bill."
Best-bet countries
But how do you know where to but? First, pick a country you already know and love because it will give you a head start in your property search. "What's more, is you can tell your renters about where to eat and so on, with genuine enthusiasm," says Marcelle Speller. At the same time, you need to visit country out of season to get a complete picture of the place and what it has to offer. Next, pick a country that already enjoys a good number of UK visitors, but isn't over run. Like any market, rentals have a saturation point. Once it's reached, rents cant be sustained and start to nose-dive.
Golden rules of buy-to-let:
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Buy in a country you know and love |
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Research up-and-coming areas |
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Target the market you want your property to appeal to |
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Ensure the house has attractions nearby |
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Is there a good infrastructure, like roads, airport, hospital and a reliable water supply? |
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Do your sums. Rent should cover at least 125% of the mortgage payments |
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Factor in maintenance and insurance costs |
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Think of but-to-let as a long-term investment, not to get rich quick scheme. |
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Find a reliable neighbour to look after the property |
My buy-to-let dream:
Anne Sadler owns a two-bedroom secluded villa with pool and gardens in the Algarve, which she lets through www.holiday-rentals.co.uk (property 6589).
"Two years ago I decided I wanted to buy in Portugal. I looked on the Internet, flew out, and within two days I'd put down a deposit. I'm a bit impulsive, but I had a gut feeling that I'd found the right house for us. At first we resisted letting it, but the rent enables us to pay for the maintenance of the large gardens with pool. We've been lucky with our guests. I always talk to them first, so it's not a faceless property - people know it's out home. It's fully equipped with everything you could possibly want to use. Last year it was let 27 weeks of the year, but we always keep it for ourselves at Christmas and Easter and a last minute break at the end of the summer. Our plan is to move out there when the children have finished school in eight years - but I don't know if we can hold out that long. My husband would go tomorrow! I'd recommend buy-to-let in the UK - except you can always do it yourself. Buy-to-let can be lucrative if you get the right formula. Gone are the days of holidays in tower block hotels and the sun beds around a communal pool. People want something different, and I think our house fits the bill."
July 2004 - Real Homes Magazine
"LIVE THE DREAM?and invest in your future"
EASTERN EUROPE: In Croatia, foreign buyers purchasing property need approval from the Ministry of Foreign Affairs which can take up to six months. Plus if you intend to use your holiday home for more than three months a year, you should obtain a residence permit.
INSIDER TIP: "We've seen a significant increase in the number of rentals in Eastern Europe. In the past year we've added 15 properties in Croatia, Romania and Serbia and expect this trend to continue, as house prices in these areas remain affordable" - Marcelle Speller, co-founder and joint MD of Holiday-rentals.co.uk.
INSIDER TIP: "We've seen a significant increase in the number of rentals in Eastern Europe. In the past year we've added 15 properties in Croatia, Romania and Serbia and expect this trend to continue, as house prices in these areas remain affordable" - Marcelle Speller, co-founder and joint MD of Holiday-rentals.co.uk.
27 February 2004 - The Independent
"Buying to let is one way to finance your home abroad. But be prepared to make compromises"
Buying an overseas property means different things to different people. Some want a straightforward financial investment and bricks and mortar, however distant, can seem a safer bet these days than stocks and shares or pension plans. Others buy for a total change of lifestyle and plan to spend the rest of their lives in sunnier climes. But the bulk of buyers want a combination of personal use and to be able to let their asset to help with mortgage or running costs.
Marcelle Speller runs www.holiday-rentals.co.uk and sees owners at all ends of the spectrum: "For some it is their pension, a pure financial investment to which they have no emotional attachment, and they want to make sure that every single week is rented out to maximise their investment. For others it definitely is their own little dream holiday home but they also want others to enjoy it and then they can get some contribution towards running costs."
Speller has always had a great interest in property and understands what makes others buy abroad. "People like us who bought a house 15 years ago, have made a capital gain, the scale of which makes , say £150,000, look like an affordable amount. For this they can buy an amazing house abroad."
But it wasn't equity which prompted her to buy a second home in Ireland: "I was just in love with the place and knew that one day I wanted to live there."
At the start, Speller's website consisted of precisely one rental property, her own, but, thanks to the huge boom in overseas investments, at the last count there were 6,693 properties listed in 50 countries including not only the top destinations for UK buyers but in more unusual destinations such as Russia and Hungary.
Helen Moore owns a Spanish apartment near Alicante (Property 9466) which sleeps six and which she rents out through www.holiday-rentals.co.uk for £200-£400 a week. Moore works in accounts, her husband is a financial adviser, and she explains why, instead of putting money into pensions, they have invested in Spanish property. "Property prices in the UK are too high at the moment and the ratios between what you spend and what you get in terms of return just aren't there," she says. "We're putting the money we would have put into our pensions into a mortgage for this Spanish property instead."
The couple did not take the decision to buy lightly and Moore explains how they planned for their purchase: "We really did our research. We looked at the map, we talked to family and friends to see what they expect from a holiday home, and we read as many books and magazines on the subject as possible."
Moore and her husband then visited a large UK property exhibition where they met representatives from a number of companies before choosing an organisation they felt comfortable dealing with.
The couple went on an inspection visit intending to buy entirely off plan but in the end she bought a property which was already under construction: "We then took out a Spanish mortgage so that we don't have to worry about the euro. Everything was organised by the developer and, although you do hear horror stories, for us it really couldn't have been easier."
Moore completed on her two-bedroomed, two-bathroomed flat just 10 minutes from the beach "and near golf courses so that we enjoy a longer season" last October, and so far is happy with the response she has got from the website: "We aren't really letting it purely to make money but just to cover its costs. The plan is that we let it out and take our holidays elsewhere."
Pamela Blackwell also lets her property, a new apartment in Gstaad, Switzerland, on the website (Property 8945) and explains what prompted her decision to buy there: "I've loved the country for a long time. I have spent many holidays there skiing, but I could never afford to buy and was buying lottery tickets in the hope that one day I could afford it."
Blackwell didn't win the lottery but on a trip to Switzerland she noticed a former hotel being renovated by developers and, in spite of its luxurious finishings, was pleasantly surprised by the price tag: "It cost me £260,000 and is wonderful. It has a swimming pool, south-facing balcony and all amenities on hand. After all, what could I have got for that sort of money in London? A pokey house in a Clapham back street."
Blackwell describes her feelings on completion: "I just feel very grateful to be able to buy in a place like Switzerland. I've never done anything so grown up before but a friend has bought three apartments there." She intends making full use of her alpine apartment and is relieved to no longer have to stay "in funny hotels where the gravy doesn't move" but she also has high hopes for renting out her apartment on the website. As she puts it: "After all, it's got to wash its own face."
Speller has years of experience in how to make your property abroad work for itself and the site includes a guide to different rental options and practical measures: "There are the obvious things like making sure that your furniture is appropriate for rentals, there's no point having Chippendale chairs and then letting the place to people with children, and equally, white carpets are never a good idea." Top tips include deciding on financial objectives for your property in advance as many other decisions depend upon them. Her other key to success is having a trusted person greet all renters at the start of their stay: "This is vital as they can explain how everything works and iron out any potential problems. Otherwise the person renting your property will be stewing for a week."
Key questions to ask yourself before letting your house abroad
Marcelle Speller runs www.holiday-rentals.co.uk and sees owners at all ends of the spectrum: "For some it is their pension, a pure financial investment to which they have no emotional attachment, and they want to make sure that every single week is rented out to maximise their investment. For others it definitely is their own little dream holiday home but they also want others to enjoy it and then they can get some contribution towards running costs."
Speller has always had a great interest in property and understands what makes others buy abroad. "People like us who bought a house 15 years ago, have made a capital gain, the scale of which makes , say £150,000, look like an affordable amount. For this they can buy an amazing house abroad."
But it wasn't equity which prompted her to buy a second home in Ireland: "I was just in love with the place and knew that one day I wanted to live there."
At the start, Speller's website consisted of precisely one rental property, her own, but, thanks to the huge boom in overseas investments, at the last count there were 6,693 properties listed in 50 countries including not only the top destinations for UK buyers but in more unusual destinations such as Russia and Hungary.
Helen Moore owns a Spanish apartment near Alicante (Property 9466) which sleeps six and which she rents out through www.holiday-rentals.co.uk for £200-£400 a week. Moore works in accounts, her husband is a financial adviser, and she explains why, instead of putting money into pensions, they have invested in Spanish property. "Property prices in the UK are too high at the moment and the ratios between what you spend and what you get in terms of return just aren't there," she says. "We're putting the money we would have put into our pensions into a mortgage for this Spanish property instead."
The couple did not take the decision to buy lightly and Moore explains how they planned for their purchase: "We really did our research. We looked at the map, we talked to family and friends to see what they expect from a holiday home, and we read as many books and magazines on the subject as possible."
Moore and her husband then visited a large UK property exhibition where they met representatives from a number of companies before choosing an organisation they felt comfortable dealing with.
The couple went on an inspection visit intending to buy entirely off plan but in the end she bought a property which was already under construction: "We then took out a Spanish mortgage so that we don't have to worry about the euro. Everything was organised by the developer and, although you do hear horror stories, for us it really couldn't have been easier."
Moore completed on her two-bedroomed, two-bathroomed flat just 10 minutes from the beach "and near golf courses so that we enjoy a longer season" last October, and so far is happy with the response she has got from the website: "We aren't really letting it purely to make money but just to cover its costs. The plan is that we let it out and take our holidays elsewhere."
Pamela Blackwell also lets her property, a new apartment in Gstaad, Switzerland, on the website (Property 8945) and explains what prompted her decision to buy there: "I've loved the country for a long time. I have spent many holidays there skiing, but I could never afford to buy and was buying lottery tickets in the hope that one day I could afford it."
Blackwell didn't win the lottery but on a trip to Switzerland she noticed a former hotel being renovated by developers and, in spite of its luxurious finishings, was pleasantly surprised by the price tag: "It cost me £260,000 and is wonderful. It has a swimming pool, south-facing balcony and all amenities on hand. After all, what could I have got for that sort of money in London? A pokey house in a Clapham back street."
Blackwell describes her feelings on completion: "I just feel very grateful to be able to buy in a place like Switzerland. I've never done anything so grown up before but a friend has bought three apartments there." She intends making full use of her alpine apartment and is relieved to no longer have to stay "in funny hotels where the gravy doesn't move" but she also has high hopes for renting out her apartment on the website. As she puts it: "After all, it's got to wash its own face."
Speller has years of experience in how to make your property abroad work for itself and the site includes a guide to different rental options and practical measures: "There are the obvious things like making sure that your furniture is appropriate for rentals, there's no point having Chippendale chairs and then letting the place to people with children, and equally, white carpets are never a good idea." Top tips include deciding on financial objectives for your property in advance as many other decisions depend upon them. Her other key to success is having a trusted person greet all renters at the start of their stay: "This is vital as they can explain how everything works and iron out any potential problems. Otherwise the person renting your property will be stewing for a week."
Key questions to ask yourself before letting your house abroad
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What are your financial objectives? |
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Do you want to maximise the income from your property or just cover costs? |
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How often do you want to be there yourself? |
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Do you want to be there on set dates, or can you be flexible and only go on weeks with no bookings? |
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Do you want to be there in the peak, summer holiday times when the rates are highest? |
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What type of person do you want to stay in your home? |
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Are you happy to have families with children and is your holiday home suitable for them? |
19 November 2003 - The Independent
"How to avoid an empty rental"
"Buying a property abroad can be a big decision. The Channel 4 show No Going Back has returned to our screens. Marcelle Speller, the co-founder of www.holiday-rentals.co.uk advises owners on the perils and pitfalls of letting an overseas property, as well as ways to maximise income. A trawl through the site reveals around 6,000 properties from Europe to India, with prices and availability on screen. The site includes a guide to letting and explains why it's important to install high-quality appliances, which will be heavily used. Amy Coley and her partner Ben feature in the programme on December 10. They advertise with www.holiday-rentals.co.uk. 'That works very well - while our adverts in golf and surfing magazines have so far brought no bookings' she says."
