It’s become fairly common for families and couples all over the world to go overseas and be tempted by looking around beautiful beach-front holiday homes. It doesn’t matter whether they have the cash there and then, the temptation to look around the homes and be well, nosey, is too great! The attraction from looking around and buying homes that are in a holiday destination comes from the chance to escape to somewhere completely new.
People think about the potential for a cheap holiday break and the possibilities surrounding a rental income out of season and they jump in with both feet. More often than not, the intricacies of a mortgage with Enness Group go unnoticed because the dream is often far nicer than the reality. Unfortunately, the reality of buying a holiday home doesn’t just come down to whether you get a nice, cheap holiday. You must be thorough in your research so that your holiday home purchase doesn’t end up costing you more than just your investment.
Holiday Home Pros
The best thing about having a holiday home, is that you have an escape from everyday life whenever you want it. Yes, it’s a tangible asset for you if you can afford it, but knowing that on any given weekend you can go and visit your other home for a break from normality is something that can make you feel free.
Another benefit of owning a holiday home is the income. You may not find yourself flush straight away, but the fact you can independently rent out your home through the holiday season gives you the possibility of a second income throughout the year. You could choose to use this income to make larger payments on the mortgage, or simply use it to save up for a second holiday home.
Lastly, the fact that you have somewhere located in a warm place is enough of a reason to want to buy one, as you have the perfect destination to head to once you are retired. There are tax advantages to owning a holiday home, which you can read about here.
Holiday Home Cons
Costs are probably the biggest con when it comes to buying a holiday home. If you manage to find tenants through the whole of the holiday season, you’re in a lucky position. Otherwise, you still have a mortgage, insurance, fees and more coming out of your own pocket and with no tenant income to offset those costs.
Making the choice not to use a holiday management company can sometimes be a bad one, especially when you need someone to regularly clean the house to keep it in good condition. You also need to consider security, as you will not be living nearby to your holiday home. A house standing empty like that is a risk and you need to ensure you have the proper security installed.
Buying a holiday home is a luxury that most will never be able to afford, but if you are smart with your research you can make your holiday home work for you every day.
*This is a collaboration post