With staycations more popular than ever, a vacation property can be a shrewd business move with low-interest rates and good mortgage opportunities available. With the ease of renting the property out when not in use, plus saving yourself the hassle of looking for your own accommodation for trips. So if you have a favourite part of the world you go to, again and again, perhaps owning a holiday home could be the best decision you ever made.
What are the benefits of owning a holiday home?
The best things about owning a holiday home are the many benefits that come with owning a property where you can relax and enjoy life. So if you fancied the beach for the weekend and you had no bookings, you can go at the drop of a hat in the full knowledge having somewhere to sleep and cook is sorted.
If the Cotswold is your dream location, then you could even go every weekend without too much hassle. With your own property, you can escape the stress of your day-to-day life and have some peace and quiet without having to go far from home.
It’s also important to remember that owning a holiday cottage is an investment in your future. If rental costs can cover the mortgage costs, in theory, it should go up in value and be a solid investment. Who knows, it could be the dream retirement home in the summer too.
Finally, other options are available thanks to the reliance on home working. You could spend the entire summer holidays in your property and work from there instead, meaning easy access to all the things you love, be that the beach or quiet countryside. To negate the loss of income of peak season, you could rent out your main property instead.
If you own a holiday home, one of the most important aspects is ensuring that it’s clean, safe and well maintained so that guests won’t find any issues when they visit. This is especially true if you’re planning on renting out your property during low season!
When should you buy a holiday home?
The decision to buy a holiday home is a big one. Before you purchase, there are a few things you should consider. Buying a property off-season can give you access to lower prices on homes and make the cost of living much more affordable than in the high season. Purchasing a property in a caravan park for example will be easier out of season as demand will be lower and more on the market.
One of the most important questions to ask is how much will owning a holiday home cost? Factor in the expense that owning your own home would entail, such as mortgage payments, council tax and property taxes. If you’re not able to make those high monthly payments, it’s probably not a good idea for you to buy. Consider what would happen if the worse case scenario of it sitting dormant. Can you afford the payments still?
Popular holiday destinations will be pricier, but also easier to rent out to cover the expense. Beachfront holiday rentals near a harbour or picturesque coastline will always be in demand.
What you need to consider in a property
Another thing to consider is what type of holiday accommodation would be best for your lifestyle or as a holiday rental. Some people enjoy staying in larger homes with multiple bedrooms, while others might prefer smaller options with fewer amenities.
Do you want to live near the beach or countryside? Are their local shops and amenities nearby? Did you want a luxury holiday villa with swimming pool overlooking the seaside or a idyllic terrace in the city-centre near a cosy pub and fine restuarants? Or is a secluded renovated medieval farmhouse your thing? Ramblers love a stroll, but true tourists like to see local sights and attractions and like things close.
Think about how many people can sleep there, as this is important for renting out. Also bear in mind that even self-catering rentals need to be furnished to a high level. This means well equipped, including en suites where possible. If you are planning on holiday lets, then a detached property might save neighbour complaints.
Once you’ve considered these factors, it’s time to research potential properties. Most property websites offer detailed information about different properties and their prices so that you can compare them and find something that meets all of your needs and desires.
What are some of the biggest challenges to owning a holiday house?
One of the biggest challenges to owning holiday homes is that you need to find the right one. There are many factors that go into finding the perfect place, such as location, size and amenities, but also mortgage payments versus expected rental income.
You’ll also want to make sure that you have enough money saved up for the deposit and furnishings before buying a house. It’s also important to factor in other costs like property maintenance, homeowners insurance, landscaping and utilities.