Everyone does it. You’re in your favourite destination, holidaying either with your loved ones or without. Everything is perfect. You’re relaxing away from the business of real life and work and all of those other things than cause you stress.
Whilst exploring, you come across a real estate agency. Like all of us do, you check out the offers in the window. You allow yourself to dream.
Investing in a holiday property can be a great retirement option, whilst earning off the mortgage through rentals until you are finished with work. Most people only take two or three weeks holiday a year, so why not build lasting memories of affordable holidays with friends and family?
However, there are a few things to consider before taking this plunge. We’ve created this article to give you an overview of the top 5 thinking points when buying holiday home.
- The location has to be right
The term ‘home-away-from-home’ should define how you feel about your holiday destination. You can only truly know this if you have spent substantial time in this magical place. You know some of the locals, you are invested in the culture, and you understand what it’s like during all seasons.
There’s nothing worse than falling in love with somewhere in the summer and finding it unbearable during the winter. Take the time to get to know your second home on a personal level. Are you compatible with it? Ask yourself what matters to you, and figure out if this place can provide you with it.
This is more than a beautiful place to holiday – this could be somewhere to live. For this reason, you need to know the location inside-out.
- Be aware of the costs
Getting to know your location allows you to understand the impact it’ll have on your home and your wallet. Just like your first home, your holiday property will have a personality. Make sure you understand the dynamics of this personality and ensure that you can afford to fix anything that might go wrong in the particular architectural structure.
Many principalities also treat holiday homes and apartments differently to straight-up investment properties, so tac is also an aspect to consider when crunching the numbers.
- Management Of Your Property
At first, you might only spend a few weeks at your new home. So what happens in the meantime?
Think about the weather in this place, will your pipes suffer from freeze-thaw? Do you live more than 1000 miles away? If so then make sure you have someone nearby who is willing to help if something goes wrong so damage or problems are not left unattended for months at a time.
A great property manager will get things done without causing you any extra stress. Renters will be supplied, fixes done promptly, all whilst removing any panic from your mind.
- Due Diligence is Essential
If you can earn more wealth, whilst enjoying the benefits of a holiday home, then you are a winner. However, this will not happen by accident.
Visit your local agents and find out what the average rental income in the area is. Look at similar properties and talk to owners to figure out the realities of your investment. Ensuring that your property is appealing enough to attract holiday makers.
Most locations have a peak season, so make sure that this time does not clash with your own preferred holiday times so you do not lose the extra income that this can bring in.
- Secure yourself
If it’s likely that your second home will be left empty for weeks and months at a time, make sure you fit in the best, most responsive security system.
Some areas have options for contracting a security firm to patrol the property on a regular basis. Certain renovations might also be necessary, like double locks, securing your windows and doors on the interior of the property as much as the exterior.
Overall, you need to decide on your priority for buying a holiday property. If you are looking for somewhere to eventually live, then the first point in this post is the one you need to pay the most attention to.
If it’s money you’re after, then all of the above are essential to consider in your process. Do not let your heart rule your head. Think priorities. Think numbers. Think long term.
Ruralco Property’s agents invest a large amount of their time in helping prospective purchasers locate the resources they require prior to making a decision on a property. If you’re interested in buying a holiday home or would like some more information, don’t hesitate to get in touch – one of our experienced agents will be happy to advise.
Follow our blog for more helpful tips and to stay up-to-date on current real estate news.
The information and links provided on this website are for general information only and should not be taken as constituting professional advice. This information does not take into account the financial situation or particular needs of individual readers. Before making any decisions about matters discussed on this website, you should consider whether it is suitable for you in light of your own circumstances, and seek appropriate advice.