Recap of holiday home news: 3 September 2009
Injured teenager refused insurance payout after car crash in France
A British man who suffered critical head injuries following a car crash in France has been told that his insurance company will not cover his treatment. Along with the British teenager, whose parents own a house in France, a passenger in the back was killed and two other passengers were seriously injured.
The travel insurance underwriters, said that they would not pay out on the policy because he was not wearing a seat belt and the car was overloaded.
This is a reminder to overseas holiday home owners who use their own or hire cars on their frequent visits, to familiarise themselves with the terms of their travel insurance and any country laws. Although some individuals may have the opinion that it’s ok to not wear a seat belt, or to drive after a few drinks because ‘the locals do it’ are warned that doing so would more than likely breach the terms of a travel insurance policy. Following injury abroad, to be repatriated could cost thousands, so don’t be left to pick up the bill.
Celebrity’s holiday homes for rent
Celebrity’s are among the growing numbers of holiday home owners who are looking for ways to make overseas investments pay their own way. Holiday letting can be a great way to support the high maintenance costs that come with owning holiday homes.
Some may visit their properties for only one or two weeks a year, so holiday letting offers an attractive income – especially when some properties demand rental rates of thousands per week.
Fancy sampling the lifestyle of the rich and famous? then consider these holiday homes for rent:
- Sir Anthony and Lady Bamford, (the construction billionaire who are worth an estimated £950m).
Location: Villa in Barbados with an Olympic-sized pool, a private tennis court and a tropical garden for alfresco entertainment, as well as the services of a butler, cook and maid
Cost: from £9,000 a week
- Richard Branson – Virgin boss
Location: Necker, in the British Virgin Islands
Cost: from about £8,000 a week
- Bruce Willis – Actor
Location: Parrot Cay, in the Turks and Caicos
Cost: £6,000 a week
- Mick Jagger – Singer
Location: Mustique
Cost: £10,000 a week
- Wayne Rooney – Footballer
Location: Barbados
Cost: £1,300 to £3,000 a night
- Pierce Brosnan – Actor
Location: Hawaiian island of Kauai
Cost: about £8,000 a week
Staying in a holiday let is attractive to many because it is often easier to rent than buy and maintain a second home. Those with plenty of money and who are accustomed to staying in dream locations are no different.
I’m sure there is no shortage of holiday makers looking to sleep in James Bond’s bed.
Investors in holiday homes abroad face big losses
Those looking to invest in property abroad, encouraged by discounts by developers and cheap mortgages should always research any market thoroughly. Unfortunately, many who have invested in foreign property have been left in negative equity due to oversupply and weak demand.
New research by the Investors Chronicle highlights some alarming statistics:
- Plunging price drops in foreign markets wiped as much as £24bn from the value of UK-owned homes abroad
- Dubai and Bulgaria are the worst hit markets, with reported peak-to-trough price falls of 75 per cent
- The value of UK-owned foreign property investments peaked at £58bn last year, up from £10bn in 2000
- The extent of price falls across foreign markets means that most of the 35,000 Britons who completed deals in the 2007-08 financial year will already be in negative equity
- In Spain, 1m newly built apartments remain unsold, and a further 2m are estimated to be back on the re-sale market as foreign buyers retreat
Tax payment deadline nears for second homes in Eire
Owners of holiday homes in Eire are reminded that they have until the end of the month to pay a new €200 charge. The Local Government (Charges) Act 2009 introduced a €200 annual charge on non principal private residences, payable by the owners to the local authority where the property is located.
The tax has to be paid by the end of September and those who don’t (by the end of October) face a penalty of €20 for every month they fall into arrears. Be warned, no reminders will be sent informing holiday home owners that they are liable. Instead the onus is on individuals to go to www.nppr.ie and pay.
Could participating in social networks expose you to burglary
Users of social networking websites such as Facebook and Twitter could face higher insurance premiums as burglars target them following details published online. Many users are effectively inviting burglars by accepting strangers as a friends then posting details about their home, whereabouts and holidays publicly on sites.
There are concerns that burglars could also use similar techniques to target holiday home owners who publish details of their holiday rental address online. This combined with availability of when the property is empty and by using other internet sites like Google Street View, could be an open invitation to burglars.
Be careful of what personal information you divulge online and try not to publish your address to strangers or disclose it to unverified enquirers.