Today buying a second home is primarily for investment reasons and generating a rental income. The days when you would buy a second property to enjoy exclusively are long gone (used to be 80% back in 1990) and today owners want to generate cash flow when investing in a property. We have seen this trend too with the ski property market and it is nowadays one of the first questions. Moreover, the current possibility to claim back VAT on many new ski properties for sale is linked to the condition of renting your ski chalet or apartment.
Once buying a second home was primarily for the owner’s own use, the global market for second homes today is driven by income returns. Almost half of all people acquiring a second home in 2019 did so with the intention to rent it out on a short-holiday-let. This has overtaken ‘own use’ as the primary reason for purchase.
Half of owners surveyed now intend to let their second home from the start. This trend has gone hand in hand with an expansion of the lower price tiers of the market. House prices rose steadily across most global markets in the run-up to the Global Financial Crisis (GFC), reflected in an increase in purchases of higher-value properties over the period.