Buying a holiday home is as complex and as challenging as buying your main residence, with numerous issues to consider before signing on the dotted line. In this series of blogs, we will look at some of the key issues to think about, in addition, of course, to taking out adequate holiday home insurance.
1. Do Your Maths
Make sure you sit down and do your sums properly – will the money you get from renting actually cover your costs? Will you make a profit or loss? And will any profit be as large as you had hoped for? If the margin is too small, or a property sounds too risky, don’t rush into a decision. Look for other opportunities.
2. Capital Growth?
In the past, many people saw holiday homes as a great way to have cost-free holidays, while they sat on an investment that grew and grew. Sadly, those days are long gone. Such capital growth will come with long economic recovery, which looks like it may take some time.
3. Finding a Good Lifestyle
If you’re more interested in finding a holiday home that is pleasant to be in, with good amenities and access to natural areas such as beaches and forests, then concern over how the property value will change may not be of great concern. But with any property costing a great deal, you should perhaps at least consider how your investment will grow. Is there potential for holiday rentals? If there is, your property value may hold and indeed grow.