Alternative ways to obtain an exclusive holiday villa

Today there are different possibilities available for  the realization of ones desire for an exclusive holiday villa.

Real estate purchase

One of these possibilities is, of course, simply to buy a holiday villa.

That means however that you have to put capital in one single investment and therefore as consequence you enter into a class of investment risk. Whatever the investment, this should be avoided, but especially considering the level of investment required today for the purchase of an exclusive holiday villa. 

Building costs, within the field of real estate, are growing due to internationally rising demand and the presently increasing construction costs. The purchase of an exclusive holiday villa is, however, independently of whether it is new or used, in principle always associated with a larger investment. For example an exclusive holiday villa as an existing property, in the upper price segment, depending upon location, age and condition still costs on average at least between 1 million and 3 million Euros.

Real estate financing

The real estate buyer of an exclusive holiday villa who purchases his or her foreign real estate through special real estate financing sometimes benefits from tax advantages and lowers the amount of his or her capital investment.

However, this does not ultimately change much in terms of the total risk of his or her total investment. (Total credit obligation / International mortgage market) On top of this, in all situations, whether it is a new or used purchase, maintenance costs such as, for example, property tax, insurance, repairs and administration etc. of an exclusive holiday villa in the upper price bracket, have to be factored in. These are about 10% of the price each year. 

On the other hand, the average holiday villa owner spends a maximum of 1 - 2 weeks a year in his or her holiday villa. For the rest of the time the holiday villa is unused and usually just accrues further costs. The possession of an exclusive holiday villa is one side, the other one is however the resulting maintenance costs and administration.

Rent cost of exclusive holiday villas

The rent, for example, of an exclusive 200,000 Euro holiday villa at an attractive international resort, depending on the dealer and season amounts to between 1,500 and 2,500 Euros daily. 

For one week holiday this adds up quickly to between 10,500 and 17,500 Euros per week. In addition to this, sought after holiday villas at attractive international resorts are in booked out for months or years in advance. Normally a large bond has to be deposited for security, this means an additional commitment of capital. 

The condition of individual holiday villas can, sometimes, be very different. Rental of individual rooms within very large and exclusive holiday villas, like as is common with similar items in golf club establishments, is still, far as we know, unknown in this area.