Cut flight routes leave overseas properties stranded

When buying a holiday home or a property investment, infrastructure near the property is often one of the most important factors to consider.

Sometimes dubbed the “Ryanair lottery”, it is important to look at the local airports and decide whether the flights into the airport will affect your rental income.

The arrival of low-cost flights over the last couple of years have been a boon for many small towns which have seen an introduction or increase in tourism. Lesser-known areas in Spain, much of Eastern Europe and places such as Morocco and Egypt have seen a boom in their overseas property investors in-part thanks to the rise of the low-cost flight carriers.

However, these routes are not always guaranteed. With low-cost airlines pulling out of some of these less lucrative routes, many foreign property investors are finding that their rental properties are no longer performing as well as they have been. Indeed Ryanair have recently announced that they will be reducing the number of aircraft they run from Stansted airport by 40 percent and will be cutting the number of flights by 30 percent. As yet, it is unclear which routes will be affected however for those whose property income relies on tourists flying in to local airports via Ryanair, this is a worry.

Ryanair opned up routes to secondary airports in areas that no-one else flies to. With cheap property near many of these smaller airports, property investors flocked and bought up reams of real estate and houses. However with the world in economic turmoil and more people holidaying in their own countries, airlines profitability has been hit. And with this, some of these out-of-the way routes will be cut.

If the foreign property has a good mix of tourists visiting the area, with some travelling by car or train, or if the area has some unique attraction such as unique culture or excellent ski slopes, the lack of flights will be of a lesser concern. However property prices and rental income may still be hit.

The moral of the story here is to do your research when planning to buy an overseas property. Factors to consider are:
• Buy property within a good distance of a major airport
• If you are buying property near a secondary airport, try and make sure several airlines service the airport regularly
• If possible, buy property which can be served by several different airports
• Look for properties which have unique tourist attractions in the local area
• Look for a property where people may also get to their destination by car, train, or other form of transport

RSS Feed for This PostPost a Comment

css.php