Investing in Holiday Home Ownership: Hints and Tips
Posted on: 17 October 2014 by William Freddy Hope
Not so long ago my wife and I decided to buy a small property on a small island off the west coast of Greece called Kefalonia. Here is our quick guide which we learnt ourselves and have written out for you.
From someone’s who’s been there before, there’s nothing quite as terrifying as putting all of your eggs into one basket when it comes to making a financial investment. In our senior years, taking big leaps of faith and putting finances at risk isn’t something we can do as flippantly as we could before we had a family to think about. But holiday home ownership is something worth investing in if you’re after a ready-made holiday home for quality time with your kids and grandkids, or you’re after an all-year-round money-making opportunity.
Many couples or families invest in holiday homes for the purpose of subletting, and with the growing demand for rented self-catering accommodation, holiday home investment makes for a great financial venture. If, like me, you’re interested in investing in a holiday home in the UK, here are some tips on what you need to consider:
Many holiday home companies allow for part-exchange on existing holiday homes. If you have already invested and you’re looking to make a transition elsewhere, you can use your existing property to part-exchange towards your new one. Some companies will also allow exchanges on caravans and motorhomes.
Subletting and Property Management
Managing a holiday home all year round can be quite a demanding role but it will certainly save you money if you have the time and energy to do this yourself. If you have the budget, many holiday home companies can provide you with the assistance you need, such as property management, cleaning and marketing. For example Southlakeland Holiday Homes offers an end to end service (more info here), so busy families can continue with their everyday lives.
Set Your Expectations High
Buying a holiday home is like buying any other property; think about all your expectations for a standard property such as natural lighting, spaciousness, and décor. Try out a holiday park and holiday property before you invest so you can really get a feel for the place. For more advice on investing in the buy to let market, see this article on This Is Money.
Think About the Ongoing Costs
The main thing to consider is how you will pay for the property and also the running costs. For my family, financing options were the most appealing as it gave us the ability to spread a fixed cost across the months. But in addition to this, you will also need to consider the ongoing running costs of maintaining a holiday property.
For more tips on holiday home buying, visit The Telegraph online.