Do you have a place that you and your family love to go to on holiday, and that you return to year after year? If so, it’s probably crossed your mind to buy a holiday home there – if you have the available funds to do so.
It depends how much you want to spend and how you’re going to use the place when you’re not there that can help you figure out if it’s a worthwhile investment or just pie in the sky?
Buying a place that you can rent out to other people when you’re not using it makes a lot of financial sense. But before you decide to sign on the dotted line for a dream holiday home, think about the practicalities of running it from a distance and what would make that easier.
For example, a swimming pool is a great draw for other people interested in renting out a holiday cottage, but for the owner who lives at a distance, having a swimming pool to maintain and manage can increase hassle and costs. Unless you have someone willing and reliable close by who will look after your swimming pool as well as you would yourself, then it’s probably best to choose somewhere without one. Getting someone else to look after an acre of garden is far easier than managing a pool.
Once you’ve bought a holiday home, you’ll need to kit it out so that it’s suitable for both you and your family and for other people. There’s plenty of cheap furniture available in the shops so you won’t have to spend a lot to equip the property fully. Put yourself in the holidaymaker’s shoes – and make sure that you provide everything you’d expect to find when you rent a place for a family holiday. Keep an eye out for things like sofa sales and make sure you buy the bigger items during bargain periods.
Make sure you remember to book out the weeks that you and your family want to spend there before you get enquiries from holiday makers and you could find that your holiday home pays for itself in only a few years.
