If you were one of the many jittery investors who postponed their summer vacation because of the downturn, do not lose heart. There is still a way to holiday like there is no recession - provided you allow somebody else to holiday in your home.
House swapping, or trading homes with someone overseas for a set period of time, is becoming increasingly popular with budget-conscious travellers. Most are looking for a way to save money, while others are just seeking a more authentic travel experience.
Hong Kong University associate professor Steve An Xue estimates he saved at least US$1,000 on hotels after his first exchange in Vermont, America. “It was a fantastic experience,” Xue said. “We made new friends with the owners of the house, who shared with us many things about the region that travel books would not be able to provide.”
HomeExchange.com president Ed Kushins says while the travel industry is struggling, his website is experiencing a record rise in listings.
“Except for air fares, a home exchange vacation anywhere in the world doesn’t have to cost any more than staying at home,” Kushins said. “It’s also popular with people who want a more comfortable, interesting stay rather than a typical hotel vacation as it gives them the comfort of staying in a home with extra rooms and the opportunity to experience an area like a local, not a tourist.”
Jessie Lam has done five house swaps in the past decade and says that, with a mortgage and two teenage children, it has helped the whole family see the world.
“We’ve been to the US, Australia and the UK,” she said. “With our current financial commitments and the kids in expensive schools, it would be impossible for us to afford hotel rooms at thousands of dollars a night. I can understand why it would take a leap of faith for some people, but we in Hong Kong are lucky as helpers are always at the flat and can check that everything is going smoothly.”
Kushins’ website features in the movie The Holiday, a romantic comedy starring Cameron Diaz and Kate Winslet, whose characters use the website to exchange not just their homes in Los Angeles and England, but their lives as well.
HomeExchange.com members are charged US$99.95 to join for one year and can post as many photos of their house or flat as they like.
House swapping has been around for many years, but Kushins said the internet has made it faster and easier to respond to inquiries, check references and finalise plans.
Looking through the listings, you would be surprised at the wide range of people who house-swap, from those with modest homes to high-end luxury properties. Although it does not keep track of individual exchanges, Kushins estimates the website has facilitated about 50 house swaps in Hong Kong so far.
“There is much more demand for people who want to visit Hong Kong on home exchange than we have listings here,” he said.
The website facilitates 45,000 exchanges a year and Kushins says that in 14 years they have never had a report of criminal activity during a swap. But a word of warning on insurance: Wing Lo, head of product development and strategic marketing for HSBC, says theft and burglary is not covered when you are lending or letting out your house.
“When adjusting the loss, house swapping will be deemed as house lending,” she said. “So this exclusion will likely be applied. Malicious damage and vandalism by a lawful home occupier is also not covered. ‘Lawful home occupier’ will include the tenant, house guests and visitors. Obviously, a trespasser or intruder is not a lawful home occupier.”
In a home-swapping situation, HSBC’s HomeSurance insurance policy will give the insured owner the usual cover for any accidental damage to his or her house and possessions. But the possessions of the incoming swappers are excluded. Car swapping is also allowed - the policyholder needs to make the house swapper an authorised driver by adding their name as an additional driver. However, there might be extra deductible cost, which will need to be verified with the insurer.
Kushins said most homeowner and car insurance provided coverage for home exchange partners as invited guests. However, HomeExchange.com includes free trip cancellation and property coverage as part of the membership.
So what happens if you are renting? Can you swap homes if you are not a homeowner?
Baker & Mckenzie partner Angela Lee says the rights and obligations of tenants in respect of rented property are governed by the tenancy agreement. Most tenancy agreements contain a “restriction on alienation” on the tenant. This prohibits a tenant from “parting with possession” of the rented premises.
“Presumably house swapping would include the tenant allowing a third party to enter into possession of his rented premises for a period of time,” Lee said. “In this case, this is ‘parting with possession’ of the premises during that period and should be prohibited.”
Dos and don’ts
* Maintain good communication. That is the best way to ensure a successful exchange and to avoid misplaced expectations.
* So don’t be afraid to ask for specific information about the house, its location and the housekeeping standards.
* Ask for references and additional photos to avoid misrepresentations and to be informed about exactly what you’re going to get.
* Exchange with members who have exchanged before - this way you will get references and referrals. Make sure you follow up on the references and referrals.
* Remove things of particular value. Rent a safety deposit box or give them to a friend to look after.
* Have someone check your house while you are away.
* Ask your helper, friends or relatives to pay a visit to make sure things are going smoothly.
* Prepare an agreement to outline details and responsibilities. HomeExchange.com provides some templates.
Your insurance policy may cover some situations, but be sure to check with your agent about your particular coverage.
Trading places lets you see the world for free
ReplyDeleteHouse swaps allow travellers to save on hotels
Susan Schwartz
27 September 2009
If you were one of the many jittery investors who postponed their summer vacation because of the downturn, do not lose heart. There is still a way to holiday like there is no recession - provided you allow somebody else to holiday in your home.
House swapping, or trading homes with someone overseas for a set period of time, is becoming increasingly popular with budget-conscious travellers. Most are looking for a way to save money, while others are just seeking a more authentic travel experience.
Hong Kong University associate professor Steve An Xue estimates he saved at least US$1,000 on hotels after his first exchange in Vermont, America. “It was a fantastic experience,” Xue said. “We made new friends with the owners of the house, who shared with us many things about the region that travel books would not be able to provide.”
HomeExchange.com president Ed Kushins says while the travel industry is struggling, his website is experiencing a record rise in listings.
“Except for air fares, a home exchange vacation anywhere in the world doesn’t have to cost any more than staying at home,” Kushins said. “It’s also popular with people who want a more comfortable, interesting stay rather than a typical hotel vacation as it gives them the comfort of staying in a home with extra rooms and the opportunity to experience an area like a local, not a tourist.”
Jessie Lam has done five house swaps in the past decade and says that, with a mortgage and two teenage children, it has helped the whole family see the world.
“We’ve been to the US, Australia and the UK,” she said. “With our current financial commitments and the kids in expensive schools, it would be impossible for us to afford hotel rooms at thousands of dollars a night. I can understand why it would take a leap of faith for some people, but we in Hong Kong are lucky as helpers are always at the flat and can check that everything is going smoothly.”
Kushins’ website features in the movie The Holiday, a romantic comedy starring Cameron Diaz and Kate Winslet, whose characters use the website to exchange not just their homes in Los Angeles and England, but their lives as well.
HomeExchange.com members are charged US$99.95 to join for one year and can post as many photos of their house or flat as they like.
House swapping has been around for many years, but Kushins said the internet has made it faster and easier to respond to inquiries, check references and finalise plans.
Looking through the listings, you would be surprised at the wide range of people who house-swap, from those with modest homes to high-end luxury properties. Although it does not keep track of individual exchanges, Kushins estimates the website has facilitated about 50 house swaps in Hong Kong so far.
“There is much more demand for people who want to visit Hong Kong on home exchange than we have listings here,” he said.
The website facilitates 45,000 exchanges a year and Kushins says that in 14 years they have never had a report of criminal activity during a swap. But a word of warning on insurance: Wing Lo, head of product development and strategic marketing for HSBC, says theft and burglary is not covered when you are lending or letting out your house.
“When adjusting the loss, house swapping will be deemed as house lending,” she said. “So this exclusion will likely be applied. Malicious damage and vandalism by a lawful home occupier is also not covered. ‘Lawful home occupier’ will include the tenant, house guests and visitors. Obviously, a trespasser or intruder is not a lawful home occupier.”
ReplyDeleteIn a home-swapping situation, HSBC’s HomeSurance insurance policy will give the insured owner the usual cover for any accidental damage to his or her house and possessions. But the possessions of the incoming swappers are excluded. Car swapping is also allowed - the policyholder needs to make the house swapper an authorised driver by adding their name as an additional driver. However, there might be extra deductible cost, which will need to be verified with the insurer.
Kushins said most homeowner and car insurance provided coverage for home exchange partners as invited guests. However, HomeExchange.com includes free trip cancellation and property coverage as part of the membership.
So what happens if you are renting? Can you swap homes if you are not a homeowner?
Baker & Mckenzie partner Angela Lee says the rights and obligations of tenants in respect of rented property are governed by the tenancy agreement. Most tenancy agreements contain a “restriction on alienation” on the tenant. This prohibits a tenant from “parting with possession” of the rented premises.
“Presumably house swapping would include the tenant allowing a third party to enter into possession of his rented premises for a period of time,” Lee said. “In this case, this is ‘parting with possession’ of the premises during that period and should be prohibited.”
Dos and don’ts
* Maintain good communication. That is the best way to ensure a successful exchange and to avoid misplaced expectations.
* So don’t be afraid to ask for specific information about the house, its location and the housekeeping standards.
* Ask for references and additional photos to avoid misrepresentations and to be informed about exactly what you’re going to get.
* Exchange with members who have exchanged before - this way you will get references and referrals. Make sure you follow up on the references and referrals.
* Remove things of particular value. Rent a safety deposit box or give them to a friend to look after.
* Have someone check your house while you are away.
* Ask your helper, friends or relatives to pay a visit to make sure things are going smoothly.
* Prepare an agreement to outline details and responsibilities. HomeExchange.com provides some templates.
Your insurance policy may cover some situations, but be sure to check with your agent about your particular coverage.