Buying a holiday home is a dream shared by many. Being able to go on vacation without having to deal with the sometimes negative surprises of a hotel, or just because it is a familiar space, is a blessing. The mere act of starting a trip to one’s home gives the vacation the feeling of “getting back home.” Like that’s where the family should be in a permanent way. But this is a financial investment, so it should be taken seriously. Check out, according to The Independent, four things to consider while investing in a holiday home.
Rental market
Invest in a holiday home to enjoy the best Summer days and make some profit in a distant future is great. But holiday homeowners usually try to make some extra bucks by getting into the rental market. When you’re not enjoying it, why not rent the space?
To this, the real estate investor needs to consider the advantages of the property carefully. Location is everything, but the house should also be large enough and have some distinct characteristics. Think about a swimming pool or a fantastic view to give it a comparative advantage in the rental market.
Legislation
Pay attention to local taxes and regulations, which may surprise you – either negatively or positively. This is notably true if you’re investing in a holiday home overseas. Sometimes you may find restrictions to home-owning by foreigners; or you can find incentives to foreign investment, like tax exemptions on property-owning or even on incom
e. Some countries will even offer citizenship to foreign investors who invest above a certain threshold.
Transport
You can have a great property, large, right in front of the beach, under favourable tax conditions etc. But you don’t want to be in the middle of nowhere. If you do, at least make it on purpose, to create a truly isolated refuge. However, just like Valentino’s holiday home in Tuscany was quite accessible (check out our site’s article about it), you should think about transportation. Is their an airport or a train station nearby? Is it easy to rent a car if you need one? Are their, at least, good roads to get there? You would also like to be near some essential infrastructures, like a shop to buy groceries and some sort of medical assistance.
Joint ownership
Time-share was invented for a reason. People can own a holiday home for a fraction of the price. And if you’re not thinking about being there permanently, it could be a good option. Time-sharing is especially recommended if you’re not thinking about approaching the rental market, even if you’re willing to invest alone in a second home. Instead of making a profit by renting in the short term and selling in the long run, you just save on acquiring – and maintaining – the property.
Joint ownership with family or friends is another possibility. It is also a saving option, with an upside regarding time-sharing: if the house is big enough, you don’t have to schedule in advance for your holidays. Just bring everyone there.