Purchasing a holiday home is as big a decision, if not more, than purchasing a day-to-day home. This is because by its very nature, a holiday home will not be used all the time, and therefore, it is important to decide if it is the right investment for you.
Here we break down some of the considerations to help alleviate any confusion in the process.
Sun, Sea or Snow
The first important consideration is what kind of holidays you intend on taking. This will usually be based on what type of holidays you and your family normally take. From relaxing beach holidays, active ski holidays, or a lake house that can provide both, this will be the starting point in a holiday home hunt.
Domestic or International
When choosing a holiday home, you may like the idea of owning an international holiday home. Bear in mind that this may make it more difficult to regularly visit the holiday home as you will be restricted by having to book international flights and potentially car rentals and any other additional expenses. Depending on the location of the holiday home, there may also be certain processes relating to the purchase of property. Getting the help of an experienced agent will be helpful.
When considering the purchase of a holiday home, setting and sticking to, a budget is essential. It is also important to bear in mind that the costs associated with the home may not just be the purchase of the home itself, but any necessary furniture (if the property is sold unfurnished), property taxes, transfer fees, as well as travelling costs to reach your holiday home on a regular basis. This is particularly pertinent if you are considering the purchase of a holiday home that you can only reach by flying. If your intention is to purchase a holiday home for an active holiday such as skiing or hiking, then you will need to purchase equipment to keep at the holiday home, such as hiking boots or Rieker Shoes hiking sandals, hiking poles, or ski’s.
For Private Use Only or Income Generating
One of the benefits of a holiday home, is that it can be income generating. There is no need for a holiday home to sit empty for the majority of the year, when you can rent it out to pay for any associated costs of the home. This can also assist in managing your budget. With development of technology, listing a holiday home for rental has become as easy as uploading a post on website with a description and pictures of the property. It is important to remember that you may need to employ the assistance of a property manager in managing the rental property, meeting visitors and ensuring the property is maintained.