Buying a holiday home: Lifestyle or investment?
People buying a holiday home, either in the UK or abroad, often fall into two camps -
-
Those planning to use and enjoy the property themselves.
Those seeking financial gain from their investment.
Sometimes it's a mixture of the two, but one factor will still probably carry that little bit more importance for you.
If buying a holiday home is mostly a lifestyle choice for you
Don't be tempted to compromise on your own needs in favour of a wiser financial investment.
Don't worry about how much the property will be worth in the next 10 or 20 years, and how the property market will behave.
Go with your heart - don't be swayed by talk of emerging markets, but think where YOU want to spend your holiday!
If your priority is to make a profit from the purchase of your holiday home
You don't necessarily have to put your own feelings and tastes aside - you can still make the property pay for itself.
Do prioritise property prices and currency fluctuation over rental yield - these factors will be much more important in your overall return.
Remember, renting your holiday home to holidaymakers should make you a profit and cover your mortgage payments, but it won't be the most important factor when you come to sell.
If you fall in the middle ground
Be sure to strike the right balance between the two factors when choosing the right holiday home for you.
Don't compromise on the location where you want to spend your holiday.
Be aware of factors such as the length of season, and access from the UK or for your target market - these will affect your rental prospects and returns.
