What Do I Need to Consider Before Buying a Holiday Home?

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(Newswire.net — July 17, 2019) — Investing in property is one of the most popular places to put your money in order to make a profit back, so what about investing in a property home? The benefits really do seem endless. You have a place to rent out and make money from in peak season, a cheap holiday at your disposal all year round, and an extra asset to your name – what’s not to love? However there are a few things to consider before investing your money into a holiday home, and here’s exactly what they are.

Will You Live in, or Let it Out?

One of the biggest decisions you have to make when investing your money into a holiday home, is whether you’re going to live in it, or let it out.

If you’re buying it with a view to keeping it exclusively as a buy to let property, then there are certain responsibilities and finances that you’ll have to be willing to take on board in order to make it work. You’ll also have to mindful, of who you’re renting it out to, and ensure that it’s tidied well between visits. The last thing you want is to rent the property out to a group of people who you can’t trust, that trash it and ultimately leave it a mess for the following people who come to rent it. It’s probably handy if you know someone who lives nearby who can keep tabs on the property, or a company that you can pay to go in and clean it between your rentals.

However, if you decide not to rent the property out at all and only use it for personal use, then you’ll have to have a bigger budget. If you choose to go about things this way, then you’re not going to make much of a budget on your holiday home. In fact, financially, you’ll pretty much make none. Although it might save you hotel fees when you go on holiday, and give you the benefit of being able to use it whenever you want, it won’t be as good a financial investment as it would have been as a buy to let. 

Or if you want, why not consider using it as both? It’ll take a bit more organising and timetabling, but it’s well worth it in the long run.

Consider What and Where You’re Buying

When making an investment this size, you’ll want to be mindful about what sort of property it is. The future might seem a million miles away from your right now, but think about the appeal of the property when it comes to reselling it in the long run (if you end up doing this). Larger properties generally boast higher rental prices, and a larger level of popularity when it comes to renting. A lot of the time, it’s big parties of people who look to rent somewhere when they go away, so be mindful of how appealing your property will be to people such as them.

Also remember to think about where you’re buying your property. If you’re investing in property in the UK for example, be aware of who your target audience is, and how they’ll have access to the best parts of whatever city they’re in. If you’re looking in the countryside, make sure it’s close by to plenty of walks, pubs and restaurants so that people can make the most of their stay. Likewise if it’s more of a city-break location, make sure it’s close enough to the city-centre of your chosen location in order for them to make the most of it. Remember, people rent holiday homes in order to feel as if they’re on holiday – even if they do opt for a UK break. Think about what it is you want when you go away, and make sure they have that and more.

The Essentials

Last but not least, remember to equip your holiday home entirely with all of the essentials that a person could need. That’s not to say fill your fridge with food and wine and give them an all inclusive stay, but do what you can to make it so comfortable and convenient that they want to return time and time again. One of the good things about putting in the effort is once people find a place they love; chances are they’ll return time and time again. Your essentials list should include:

  • Wi-Fi.
  • An air conditioning/heating system.
  • Easy parking.
  • Shops within walking distance.
  • Entertainment such as bars and restaurants in either walking/driving distance.
  • Child-friendly entertainment nearby for families. 
  • An outdoor space.

With these essentials you can’t go far wrong.