If you’re considering the purchase of a holiday home, it is likely your reasons for doing so come from one of two perspectives: either you are planning to use the property yourself as a holiday hideaway, or you are seeking to use the property as a source of income. Sometimes the buyer has an ambition to do both, but it’s important to consider the following points before taking the plunge:
If you want to enjoy the property
All the decisions you make about what property to choose should be made according to your own wants and needs, so don’t be distracted by lesser properties which offer better investment returns, and ignore predictions about the future growth of the local housing market. This is where you want to spend your holidays, so make sure it is the ideal space for you.
If you are looking for a profit
Renting out a holiday home to cover mortgage payments is about having the property occupied as many weeks in the year as you can, so look at popular destinations which attract year-round interest. However, property prices and currency fluctuations should receive more attention than rental yields when buying a property – these will be much more important when it comes to cashing in your investment at a later date.
If you want to achieve both
Getting the best of both worlds is about finding the right balance, so some compromise may have to be made on the price you pay for the property. Don’t compromise the location, however; you still need to be able to enjoy your holiday home and after all, the chances are that if you like it, others will too.