There may come a time in your life when – either through canny saving and investment, a windfall, or inheritance – you find yourself with money burning a hole in your pocket.
There are so many ways to make it work to your advantage through buying property, whether it be a holiday home for you and your family, a house or flat you can rent out, or somewhere for one of your children to live, possibly when they are a student.
A holiday home in the sun is possibly the most immediately appealing option, with many places in the Mediterranean still surprisingly inexpensive.
Specialists in international property Spot Blue International are offering two-bedroom, two-bathroom apartments in Iasos, near Bodrum, Turkey, for £43,000. There is off-street parking, the sea is a ten-minute walk away and Bodrum airport 45 minutes by car. There is a private garden and communal pool. The resort has 24-hour security and a full-time manager on site.
Great value: This three bedroom semi-deteached villa in Davutlar, Turkey, is £99,950
Various flats are for sale at Bath’s Riverside development
An apartment here could be used exclusively for holidays or be rented out as an investment.
Alternatively, £99,950 will buy you a three-bedroom, semi-detached villa in Davutlar, near Kusadasi on Turkey’s west coast, through Spot Blue. The three double bedrooms all have small balconies, and there are two bathrooms.
The villas are part of a complex with three outdoor swimming pools, some with water slides, as well as basketball, volleyball and tennis courts, plus 24-hour site security.
Julian Walker, of Spot Blue, says that Turkey is proving particularly good value for British holidaymakers because of the favourable currency rate between the pound and Turkish lira. He also points to the area around Bodrum becoming more accessible as Turkish Airlines has launched a new summer Gatwick to Bodrum route, running every Wednesday and Saturday until September 8.
Across the Mediterranean, the property market in Ibiza is booming. Entry prices for villas, fincas and apartments in some of the most desirable locations increased once again in 2017.
There have been increases of up to 17 per cent for fincas in the north of the island and 11 per cent for villas in the west. Florian Fischer, managing partner of Engel & Völkers estate agents, which has two outlets on Ibiza, says the luxury end of the market is strong: ‘The number of properties coming on to the market is growing in the luxury segment,’ he says.
Engel & Völkers cited the sustained growth of private air traffic to Ibiza – it rose by 8.5 per cent in 2017 – and an increase in the number of wealthy visitors drawn to the island’s marinas as indicators that the rich are favouring the island more and more.
The company anticipates that residential properties on Ibiza will continue to have a high level of interest, particularly among international buyers and clients from the Spanish mainland, with the current new construction activity resulting in a higher availability of quality properties on the market.
However, it feels strict building regulations will mean that a scarcity in supply can be expected in the long term.
A three-bedroom apartment in this block in Ibiza is selling for £481,000
For €550,000 (£481,000), Engel & Völkers are selling a three-bedroom, two-bathroom apartment on the second floor of the building Nueva Ibiza, in Ibiza town. There is air conditioning and the block has a lift. There is also a 24-hour security service, gardens and a communal pool.
If having a return on your investment is what you’re after, you may feel more comfortable investing in property in Britain. In which case you could enter the buy-to-let market. One way to do this with the confidence of knowing that you will have a guaranteed income is to buy in a development that promises a certain yield.
Developer Crest Nicholson say that investors will receive a return of six per cent for two years if they buy an apartment in Bath Riverside, a collection of flats and penthouse apartments a short walk from the city centre. The variety of accommodation – set on the banks of the River Avon – stretches from studios to four-bedroom homes.
Just across the river is the Royal Victoria Park, a substantial green area that includes botanical gardens, children’s play area, tennis courts and Victorian landscaping.
However, it is northern England that is regularly top when it comes to percentage profit from buy- to-lets. The cities of Liverpool, Manchester, Sheffield and Leeds have properties that can command yields of eight per cent.
It’s surely no coincidence that these cities also have high student populations, and in recent years landlords have profited from the need for housing for the increasing numbers of students in the areas.
But if there is someone in your family moving to another part of the country for further education, why not buy a property for him or her so you know they have somewhere decent to live when they are there? And after they have left it could be let to other students.
On pages two and three of this supplement we have already dealt with the benefits of new-builds, particularly for first-time buyers.
Many of those incentives are transferrable for the buy-to- let market.
While you won’t be able to take advantage of Help to Buy, there are other measures that developers offer that might bring down the cost of your investment.
Companies such as Galliard Homes have a number of incentives, such as properties coming fully furnished – as many of their new-builds do, including Harbour Central in London’s Docklands.
There, Galliard provide Smeg integrated kitchen appliances and free furniture packages that include 40-50in LED TVs, Sonos playbars and mood-lighting.
Across the Thames at Surrey Quays, Galliard are specifically targeting investors with their offers at the Marine Wharf East development.
Galliard are offering a three per cent discount, a service charge allowance plus a free parking space with three-bedroom apartments there.
And in Shoreditch, at their Stage development, Galliard are offsetting the extra three per cent Stamp Duty surcharge that investors pay if buying additional residential properties within England, Wales and Northern Ireland.
The Stage also has a unique history to it – the 37-storey tower will include 412 apartments designed around the remains of Shakespeare’s original Curtain Theatre.
Discover the joys of lodge life
When it comes to holiday homes in Britain, park homes can work out very cost effective. Because of how they are constructed, they are often a lot cheaper than traditional bricks and mortar houses. And some are located in the most spectacular settings.
One example is Palstone Lodges, in the pretty village of South Brent in Devon’s beautiful South Hams. The site includes a collection of contemporary cedar lodges set among landscaped grounds which boast more than 1,000 species of rare and exotic plants, trees and shrubs from around the world.
One example is Palstone Lodges, in the pretty village of South Brent in Devon’s beautiful South Hams (pictured)
It extends to five and half acres on the edge of Dartmoor and, as the grounds were established more than 25 years ago, the plots have the privacy that a mature woodland setting can afford.
Co-owner Matt Morgan grew up on the farm where the lodges now sit and has been planning the site for more than 30 years.
Six lodges are currently available to buy, starting from £175,000 for a two-bedroom and rising to £255,000 for a three-bedroom lodge.
Peter and Yvette Cheeseman, both retirees from Dorset, say they made a lifestyle investment when they purchased their Palstone lodge and claim their family now saves £10,000 a year on holidays.
‘We had money available from our pension and we were trying to think about what we might be able to buy,’ says Peter.
‘We liked the idea of escaping to Devon to get away from our busy lives in Dorset where I still have business interests and Yvette competes with her horses.’
Devon delight: One of the Palstone lodges
What really stood out for Peter and Yvette were the secluded plots the lodges were sat on and how they are exclusively for the use of owners, their friends and family only.
‘That gave us the added confidence that we were making the right decision,’ says Peter. ‘It meant that we could have certainty and peace of mind that people buying at Palstone Lodges genuinely cared about their property and who stays there.’
Peter and Yvette’s four children also enjoy their Devon bolt-hole. ‘For them, it’s a free holiday,’ says Peter. ‘We take pleasure in the fact that we’re giving them something special as part of our family unit.’
Each plot has a 125-year licence and annual service charges of £2,750, plus VAT, which covers garden and grounds maintenance and general insurance. Each property is free from Stamp Duty and Council Tax.
The lodges are designed as holiday homes and not places of permanent residence.
Regulars: Phil and Rebecca Grant with their children Rory and Oscar
Rebecca and Phil Grant, from Harpenden in Hertfordshire, often come to their Palstone lodge with their children Rory and Oscar.
‘For me, working in horticulture, the attraction came from the setting, with established planting and carefully curated landscaping,’ says Rebecca. ‘It seemed to suit us perfectly. We wanted a gentle, soft green space.’
Since buying more than ten years ago, they have visited the lodge most months, taking extra time there in the summers.
Rebecca and Phil have made good friends with the neighbours and even socialise with them away from Palstone Lodges. Rebecca feels this has been of vital importance to them, and even more so now they have a young family.
‘When we visit now we know people are there, some of whom have become great friends, but we can’t hear or see them from our lodge,’ says Rebecca.
‘It’s really nice to have a sense that everyone who has a home there wants a similar way of life.’