Renting holiday homes, either in the UK of abroad is a common holiday type for most people.
You may have been charmed by a modern Spanish villa, or a quaint cottage in the Cotswolds, and even asked yourself whether buying a holiday home yourself would be a good investment.
But should you actually do it?
Investing in a second or holiday home is not only an effective way of generating income, but is something that you can enjoy too!
You can have the best of both worlds, renting it out, as well as holidaying yourself.
However, it is a big decision that requires a lot of thought, consideration and needs a financial strategy too.
You need to get your investment strategy right from the start in order to reap the benefits of your holiday home.
What are the benefits of owning a holiday home?
- One of the biggest benefits of owning a holiday home is the rental yield that can be gained from your investment.
- If your property is well-located and in a sought after location, then you can receive double the rent of typical buy-to-let properties.
- A well-placed property will always get holiday makers paying a little more to get their dream holiday accommodation.
- Much like any property development project or portfolio, there are the long-term benefits of capital growth, which is often used as a pension later in life.
More information on how to boost your pension income.
The UK tax policies state that holiday home ownership is a business venture, so there are also a number of tax benefits to owning your own second home.
Take advantage of seasonal rentals
As well as a steady income throughout the year, you can also take advantage of more popular seasons and holidays like Easter, Christmas and bank holidays. You will be able to charge a higher rent during these periods as demands for holiday homes are higher.
Want to know how to maximise your income during the holiday seasons? Click here.
How can I buy a holiday home?
As buying a holiday home means buying a home in addition to your current residency, there are a number of funding options.
You may wish to buy a plot of land to construct your holiday home, extend or renovate your holiday home. If so, there are a number of funding options available to you.
Property development funding can help you get your project up and running. Read more here.