#2ndhomes

[naplesgolfguy]

Mansion Global Shares Investors Account for About One in Six U.S. Home Sales. Activity rose more than 15% in the second quarter compared to the first three months of 2021. Ready to buy your own vacation home in SWFL? Let's connect - 239-370-0892.

[naplesgolfguy]

Demand for Vacation Homes Surges. Mortgage applications for second homes jumped 84% year over year in January. Are you ready to buy a vacation home in Southwest Florida? Let's connect - 239-370-0892.

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[coldwell-banker-sant-cugat-eng]

Which European Citizens Love to Own Second Homes?

Having a second home is a luxury which not everyone can afford; in fact the privilege of a second home is reserved for the wealthy or at least those earning a decent wage. A second home is usually in the countryside or resort city where the home owners can not only come to enjoy holidays but also rent out the property the rest of the year to make a small additional income. The extremely wealthy buy a second (third or fourth home) and leave it empty for most of the year. Only coming to use it when they want to go on vacation. Other second home buyers reserve a couple of week for themselves during the year and rent out the property to tourists the rest of the time. Buying a second home is not only intended for present-day use and present-day rental profits but also as a long term investment. Everyone wants to leave their children a small nest-egg and a second home can be just that. Average wage earning people can inherit a second home and then just keep it for sentimental reasons.

So who are the people who can afford to buy a second home?

Surprisingly statistics show that among European nations it is not always the highest earning countries which invest in second-homes. The country where the highest number of citizens own second-homes is Greece where the average gross monthly income is 1,064€. 32.8% of Greeks own second home. This is a surprising statistic considering that the country’s economy is floundering and wages are low. The statists continue to show low wage earning countries as leading second home owners. The country with the second highest number of citizens who own second homes is Poland where the average gross monthly wage is 716€ and 25.1% of Poles own second homes. Slovakians earn an average gross monthly salary of 823€ and 23% of them own second homes. 20.4% of Spaniards own second homes and the average gross monthly wage in Spain is 1,634€; 19.2% of Czech citizens own second homes although they only earn an average gross monthly wage of 795€; 17% of Portuguese nationals own second homes and the average gross monthly wage in Portugal is 1,070€.

Then there is the other end of the scale – the wealthier nations. Austria, Italy, Finland, Sweden, France, Britain, Holland and Germany all have lower second home ownership figures than the lower earning European nations. In Germany where the average gross monthly income is 2,609€ only 5, 4% of the nationals own second homes. Not far behind is Holland where citizens earn an average of 2,703€ a month and 5, 6% of the citizens own second homes. Finland has the highest average gross monthly wage among nations included in these statistics. Fins earn an average of 2,735€ per month and 12, 1% of them own second homes.

Why is it that citizens of higher income countries own fewer second homes?

The wealthier countries have heavy taxes on second home ownership and the up-keep of a second home is more expensive in these countries than in lower income countries. Even though citizens may be earning a higher average monthly income they are aware of the expense of owning a second home and so citizens of higher income countries avoid the unnecessary extra expense. Second homes may be a large asset but they are a huge expense as well with transaction costs, taxes, maintenance and community fees. Second home owners also have to consider the possibility of your property loosing value. Home owners in wealthier countries are secure in the primary residential market of their own country and prefer to concentrate their assets there where it is secure and likely to make a profit.

In Greece and some other European countries the second home ownership could be high because urban residents still have a strong emotional attachment to their “ancestral” village in the country. For this reason many Greeks hang on to their parent’s old country home while moving to the larger cities for work and modern conveniences. The same goes for many Mediterranean cultures. When looking at the statistics of second home ownership you should take into consideration that many of the second homes in the lower earning countries were inherited rather than bought for an investment. The bottom line is that anyone would like a second home in an idyllic location where they could occasionally escape the rat-race. In some countries it is more of a tradition and an accepted part of the culture to have a second home. In fact it isn’t necessarily a status symbol but simply a part of the culture. The statistics relating to wealthy European countries and second home ownership do not really throw light on any significant trend in the property market.

[elisemtgs-blog]

Mortgage Insurance Guideline changes for May 30, 2014. Are you ready?

And more changes to come….. Genworth…

At the beginning of May, CMHC advised that they were making changes to their product line effective for May 30, 2014, the changes were talked about in our previous blog B21 & CMHC Rule Changes

Shortly after that Genworth reviewed their books and they announced the following:

Effective May 30, 2014, the maximum number of units allowable under the Vacation/Secondary Home Program will be reduced from 2 units to 1 unit.

Upon review of the current Business for Self Program, they will not make any changes to their product line.

Current guidelines for Genworth’s Business for Self program state the following:

The income reported by the borrower must be reasonable based on the industry, length of operation and type of business

Strong credit profile with minimum 2 trade lines with at least two (2) years history

No mortgage, installment or revolving credit delinquencies appearing on the credit bureau in the past 12 months

No reported defaults on residential mortgages for the past 7 years

No previous bankruptcy

Minimum 5% down payment from the borrowers own savings. The remainder may be gifted from an immediate family member. Borrowed down payments are not permitted.

Borrowers with commission income are ineligible

Lender to ensure borrower(s) have no tax arrears

All applicants used to qualify must occupy the property (If two unit property, one unit must be owner occupied)

Questions about your mortgage options and Business for Self?

Blogged by Elise Hildebrandt, AMP Mortgage Associate Associate Lic #316103 at The Mortgage Centre Brokerage Lic #31547, Saskatoon Elise has been in the financial industry for 16 years. Contact her at: [email protected] or www.elisehildebrandt.ca

[tele-addicted]

http://uk.news.yahoo.com/peer-39-earns-300-40-minutes-39-025620720.html#cFl70Nw

> In the wake of the latest Parliament scandal a Peer earns £300 for just 40 minutes work, is it time there was an independant audit of ALL of the Houses Of Parliament finances? We should see a list of who claims how much and for what. Its just recently been announced that MPs are to get a pay rise, currently this is what they earn, The Prime Ministers annual salary is £142,500 Cabinet Ministers annual salary is £134,565 Backbench MPs annual salary is £66,396 but they can earn more by sitting on commitees, The MPs claim expenses for all sorts of things from TV licence, furnishing their second homes, food expenses, utility bills, travel expenses and if family work for them they can pay them over the odds. There are married couples who each claim the other home as there 2nd home. Just watch live Parliament TV at anytime, sometimes bills are being discussed between just 5 MPs excluding the Speaker and staff.