In recent years, the enthusiasm for buying a second home, mainly from interested parties aged between 35 and 65, has been increasing enormously. Remarkably, the interest is not only in countries with a pleasant climate and frequent sunshine. The Netherlands and Austria, for example, are also among popular locations. 

Opportunities in the recreational housing market

Demand for recreational houses will continue to rise over the next five years. If a quarter of households who are currently certain about purchasing actually do so, this would lead to around 3,500 transactions annually. That is almost double the average number of transactions per year as a comparison over a period of the past 10 years. The majority of these are households that do not currently own a recreational home.

A large proportion of existing recreational homes are located at holiday parks. Various management constructions for the recreation homes are offered at these recreation parks. The buyer often has the choice of managing the rental itself or outsourcing it to the park operator. In the latter case, two concepts are possible: return based on the actual rental income or a guaranteed return for a predetermined period.

Real estate as an alternative to the savings account

We have (almost) all learned to save. This actually starts at a young age. In fact, it used to be the most normal thing in the world to deposit one’s savings at the bank. Interest rates were also more than attractive, so looking for alternatives was not very obvious. What was as solid and familiar as the bank?

The European Central Bank (ECB) wants to stimulate the economy by making borrowing and spending attractive. Banks can borrow cheaply, which also means mortgage rates are historically low. On the contrary, the ECB makes saving unattractive. They even charge negative interest rates to keep money safe. As a result, banks are paying for savings and this causes the current low savings rates. It is therefore only logical that people with savings are looking for alternatives.

With mortgage rates at historically low levels, there are even more favourable options for financing second homes. Investing in bricks still offers excellent future prospects with the caveat that this is a long-term investment. However, it is necessary to find out what you are actually investing in. Because even though the brochures may look nice, this says nothing about the projected and actual returns.

In other words: if something sounds too good to be true, it usually is! Always ask for examples of calculations, experiences and references. During the Second Home fair, you will have plenty of opportunities to look and compare when it comes to property investments. Keep in mind that to protect consumers, there are (behavioural) rules, drawn up by the Netherlands Authority for the Financial Markets (AFM), that investment property providers and financial intermediaries must abide by.

A second home can also be an excellent real estate investment if the aim is to rent it out. It is important to note that rentability depends largely on the location, accessibility and amenities in the (immediate) vicinity. Returns between five and seven per cent on an annual basis are realistic, but this requires a sophisticated rental plan from a reputable rental organisation.

Seminar programme

Lectures and presentations by experts, active for renowned organisations, will be given continuously throughout the three days of the fair. These seminars provide visitors with valuable and extremely useful information. Every country has its own laws and regulations. They may even differ from one region to another. The role and function of the notary abroad may differ substantially from the situation as in the Netherlands. Consider, among other things, the tax and legal aspects that are important when buying and owning property abroad. The purchase process for countries such as France, Italy, the United States, Spain, Norway, Austria, Switzerland, Greece and Turkey will be highlighted. There are also seminars on how to successfully rent out a second home. There will be an opportunity to ask questions after each lecture.

Will the lucky new owner of a second residence finance the property himself or is it extra interesting at the moment, because of the historically low interest rates, to partly finance the property? Borrowing money without equity is of course out of the question, but with 40 per cent of your own disposable capital, there are more than enough options. You will see imposing models and beautiful images of villas and apartments at exhibitors on the show floor. Everything has a price tag, but what exactly is a market-based price for the property that makes your heart beat faster? What are the do’s and don’ts?

In short, during the Second Home Expo you will have more than enough opportunities to find inspiration and information!