The buy-to-let market is currently experiencing a strong period of growth, but what is it that is making it such an attractive proposition?
Compared to other investment sectors impacted more heavily by the wider economy, property investment is relatively strong. Holiday lets in particular have been boosted by a rise in the number of Brits taking ‘DIY’ holidays in order to manage their costs.
If you’re thinking of buying a holiday home to let, here are some of the reasons why it could be a great investment:
- Stay-at-home holidays are increasing in popularity. According to VisitEngland, the number of overnight trips taken by British residents within the UK during 2011 rose by nine per cent compared to the previous year, with a 13 per cent increase in spending.
- The growth of specialist holiday home rental sites, such as www.rentmycottage.com, has increased public awareness of this type of holiday opportunity.
- It helps you reduce your own holiday costs while providing an income that could cover your mortgage costs – or even make a regular profit.
- Buying abroad allows you to take advantage of currency exchange rates and fluctuations in weaker foreign economies. Choosing the right foreign property can provide you with an asset that pays for itself.
However, before making any commitment to purchasing a holiday let at home or abroad, it is important to do extensive research on the property you are buying and its location.