This is a true case history detailing the purchase of a holiday home overseas. More details can be found at Buying a Home in Spain

Mr and Mrs Jones bought an apartment in Spain in 2002 for 107000 euros. It is a lovely three bedroom apartment only 10 minutes walk to a beautiful beach. They had it valued recently (October 2005) for 155000. An increase of 45% over three and a half years. The reason they had it valued was because they wanted to remortgage. In fact the mortgage company's valuer was over-cautious because an identical property next door was recently on the market for over 200000 euros. So the real increase in value is probably even greater than 45%. If the apartment was sold today it would almost certainly fetch more than 155000. The main point here is that it is worth a lot more now. This reason alone is sufficient incentive to buy a home overseas. It is simply a great investment!

The second benefit of owning a home overseas is that the owners stay there, free, whenever they want. All they pay is the flight, car hire, and a payment to the caretaker to prepare and clean the apartment.

The third point, and this is an important one, is that the owners did not actually pay 107000 for the property. No, they paid only 20% and borrowed the rest through a mortgage in Euros at a very low interest rate. So they only had to find 21400 euros plus around 10000 euros for solicitors fees, taxes, agents fees etc.

The fourth point is that the property is rented as a holiday home (short term lets in summer and long term lets in winter) when the owners are not using it. The owners get an income from holiday lets of around 5000 euros per year which pays the mortgage !!!.

So, to recap, Mr and Mrs Jones spent about 32000 euros (21400 deposit plus costs) for a home overseas. The mortgage and running costs are paid for by rental income. The owners get to stay there whenever they like (usually about twice a year). In 15 years time when the mortgage is paid off Mr and Mrs Jones will own an asset worth, at today's prices, at least 155000 euros. In 15 years time it will probably be worth much, much more!

This is why people buy a home overseas!

When buying a property abroad you must take into account the popularity of the country and location. This is particularly important if you are planning to let the property; it will also be important when you come to sell the property.

My advice is to buy in a country that is popular with tourists. Spain and France are still the top holiday destinations for British tourists. However recent statistics show that tourism in Eastern Europe is rising sharply. In particular the number of trips to Poland and Bulgaria has increased significantly.

The number of British tourists travelling to holiday destinations abroad is shown below:

1. Spain 13.8 million
2. France 11.6 million
3. USA 4.1 million
5. Italy 2.9 million
6. Greece 2.7 million
7. Germany 2.3 million
8. Turkey 1.1 million
9. Czech Republic 0.7 million
10. India 0.6 million

A recent report by Inmueble suggests that demand for Spanish property from foreign buyers has fallen by 9%. This doesn't appear to have dampened prices however, with prices of Spanish property in coastal areas showing a 13 to 15% increase in 2005. Analysts suggest that the rise in 2006 will be lower but should nevertheless achieve a respectable 7 to 9% increase.

Further information at Spanish Property | Property Abroad | Overseas Property

Montenegro is about 15 minutes from Dubrovnik, the capital of Croatia, and is similar in climate and landscape. There are fewer tourists and because of this property prices are lower than in Dubrovnik. Many of the properties for sale are older properties requiring some work.

There are no restrictions on foreigners buying property in Montenegro. Croatia has become popular with foreign property buyers in recent years and property prices have risen. If Montenegro becomes established as a popular holiday destination property prices are likely to rocket.

Hopes of a rebound in the UK property market were kindled this month. A recent report from "Rightmove" indicates that there was a surge in the number of homes sold in August 2005. Traditionally August is one of the quietest months for the UK property market. This increase in sales may indicate that the year long recession in the UK housing market is coming to an end. However analysts pointed out that the increase in sales volume does not necessarily mean an increase in property value.

It is not often that I wax lyrical about a new website but the Spain Encyclopedia really deserves some attention. Anyone interested in buying property in Spain should check the Spain Encyclopedia for useful information, facts and figures.

The Spain Encyclopedia is a free online encyclopedia dedicated to Spain and all things Spanish! The aim is to have an entry for every city, town and resort in Spain! Already the Spain Encyclopedia contains 100s of entries (if not 1000s).

Authors Wanted!
The Spain Encyclopedia is currently seeking authors to write anything, however short, about Spain or Spanish life. You can submit your entry at the Spain Encyclopedia. Contributions containing factual entries about cities, towns, and tourist resorts are welcomed. Also welcome are topics relevant to living in Spain, food and drink, the history of Spain, tourist information, Spanish weather, Spanish holidays and fiestas, Spanish culture and customs.

All year round good weather and a wide range of flights from many destinations makes Florida a popular choice for second home buyers. House prices are relatively low in Florida compared with other overseas destinations. An estimated 18,000 British people bought a home in Florida in 2005. One of the major attractions of Florida is the number of theme parks. Walt Disney World's Magic Kingdom, Epcot, Disney-MGM Studies and Animal Kingdom, Universal's Universal Studios, Islands of Adventure and Sea World are all located in Florida. In addition, good nightlife, shopping, eating and sports facilities combine to make Florida a popular holiday destination. This means that a carefully located holiday home could be rented out for most of the year. Popular areas of Florida for second home owners include Orlando, Lake Buena Vista, Kissimmee, Winter Park, and Altamonte Springs.

For maximum rental appeal your overseas property in Florida should have access to a golf course, a swimming pool, be close to the coast or one of the major tourist attractions, and be within an hour's drive of an international airport. There are 1,200 miles of beach in Florida and over 1,250 golf courses. Florida Tourist Information is available on line

Climate: From July to September the temperature can reach 37 degrees C with 100% humidity. Temperatures in Florida are cooler from October to May and can drop to 15 C. September is the wettest month.

Buying a Home in Florida