People say not to mix business and pleasure, but they must not own a holiday home. There are many more advantages than personal enjoyment alone. The savviest investors understand that picking the right property provides massive potential for financial gain — all while cutting costs on their own holidays.
Here’s what you should understand about the benefits of buying a holiday home. They might not come cheap, but they can certainly be worthwhile.
- Financial investment and potential rental income
Save on your holiday bills and rent out the property when not in personal use. It sounds like a dream, doesn’t it? It’s true to an extent; yields are typically higher than average buy-to-lets (think 8% over 6%). A holiday home is a significant investment with a high potential for sizable rental income.
But there are additional considerations. Responsibility and ethical investment are key, especially in light of criticism over holiday lets pricing local residents out of affordable housing. Therefore, you should consider non-residential-style options, like lodges in holiday parks if possible.
Remember that you’ll be applying for a holiday let mortgage too, not a standard application. There will also be management costs to offset against your profit.
- Personal enjoyment and family retreat
Buying a holiday home doesn’t just bring financial benefits, there are also plenty of personal perks to enjoy. Not only does this investment lower the costs of your annual (or biannual) getaway, but it also creates a home-away-from-home. It becomes somewhere to visit to celebrate family gatherings and a familiar space for younger children. You have the freedom to visit as often as you want, and you can let your close family and friends use it too.
Whether you’re looking for luxury lodges for sale in Cornwall or dreamy apartments on the Costa del Sol, a holiday home is a great destination for personal enjoyment. Pick a location that’s special to you and embrace consistent returns on your investment.
- Flexibility and accessibility
Sometimes, you get lost in the daily stressors of life and having somewhere you can head on holiday without needing to book in advance is precious. It’s zero-stress and totally easygoing, providing freedom for you and your family.
Holiday homes aren’t just beneficial for spontaneous travellers. For those with young children, the restrictiveness of travelling during the school holidays can be overwhelming and expensive. During the school holidays, prices rise considerably to meet the surge in demand. And, even when you reserve spots in advance, the scarce accommodation that is available is already expensive. Investing in a holiday spot of your own increases both flexibility and accessibility.
Buying a holiday home is a significant milestone; if you’ve got to this stage, then congratulate yourself. There’s a starry future with plenty of benefits, so in the meantime, just prioritise picking the right property and location.
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