Few of us are fortunate enough to be in a position to buy a second home, but for those who are looking to build their property portfolio, doing so can be a good investment.
Not only does a second home give you somewhere different to spend your long weekends or holidays in the sun, but it can also reap financial rewards too if you choose to rent your property out while not in use. However, you may want to consider looking at what home loans are available to you before committing to investing in a second property.
Comparing your options for different home loans can help you find a deal that is most appropriate for you and your circumstances, which could put you in a better financial position to kick-start your investment. If you’re looking to purchase a second property in Australia in particular, our very own home loan comparison journey is a great place to start.
Whatever your motivation for buying a second home, there are many perfect destinations to choose from, but which come out on top as the best?
To find out, we at Compare the Market Australia analysed 34 OECD countries on key factors such as the cost of living, increasing property values, and more.
Known for its beautiful coastal towns, friendly locals, and relaxed pace of living, Portugal takes first place with a score of 7.27/10. The country is an extremely popular tourist hotspot, with many choosing to make Portugal their second home-from-home.
Portugal scores particularly highly for its proportion of restaurants, with 349 per 100,000, which is surprising for such a small country. Portugal also scores well for its average cost of living too, coming in at around US$549.28 per month (AU$798.91).
Hungary and Turkey share second place, scoring 7.06/10. House prices in Hungary have risen dramatically, more than doubling over the last ten years, taking second place for the factor. This rise in house prices makes second homes in Hungary attractive if you’re looking to rent out your property while you’re away.
In contrast, Hungary’s average monthly cost of living expenses total around $496.64 (AU$722.34) a month. Hungary also ranked the best for their beer prices too.
With its vast seaside resorts and excellent climate, Turkey is a very attractive location for those looking to buy a second home. The country has the lowest average cost of living expenses at $356.11 (AU$517.95) per month and can’t be beaten when it comes to both property resale and rent price increases, with a 175% increase in resale profits and an almost 95% increase in rent profits.
The Czech Republic is up next, with an overall score of 6.97/10. The country is renowned for its breweries with Pilsner Urquell and Staropramen exported all over the world. So it’s no surprise that it’s one of the most affordable beers, costing a mere $1.75 (AU$2.55) on average.
Getting around is also very affordable in The Czech Republic, as taxis have an average starting cost of $1.63 (AU$2.37) on a normal tariff, placing them in the top five for the factor.
Looking at each OECD country, the following factors were analysed, giving each one a normalised score out of 10 for each factor before taking an average of these scores to reach an overall score out of ten.
Ten-year house price increase (higher = better). How much the average house price in each country has increased between 2011 and 2021 according to the OECD’s housing prices data.
Ten-year house rent increase (higher = better). How much the average rent in each country has increased between 2011 and 2021 according to the OECD’s housing prices data.
Number of restaurants (higher = better). Sourced from Tripadvisor on 22/08/2022.
Things to do (higher = better). Sourced from Tripadvisor on 22/08/2022.
Cost of a beer (lower = better). Sourced from Numbeo on 22/08/2022.
Cost of a taxi (lower = better). Sourced from Numbeo on 22/08/2022.
Monthly cost of living (lower = better). Sourced from Numbeo on 22/08/2022.
Population. Figures for 2021, sourced from the OECD.
All prices were converted using Google Finance on 22/08/22.