Tempted to buy a holiday home?
Owning a vacation property can offer many lifestyle benefits – but there are a few things to consider before you commit to a more permanent getaway option.
23 November 2019
If you’re heading away during summer, you may daydream about buying a holiday house of your own.
While the idea of owning a beachside beauty or a house in the hills can be tempting, it’s important to be realistic.
Can you afford it?
Buying a holiday home is a major expense, and it’s a decision that deserves careful consideration. As well as an extra mortgage, there are many other costs involved.
Expenses like stamp duty, insurance, council rates and the ongoing costs of maintenance need to be factored in. So, pause to crunch the numbers and work out whether you really can afford it.
Investment or personal?
Make sure you consider whether your property will be solely for personal use, or as a short-term rental.
While renting it out may help to supplement your income, seasonal fluctuations and irregular bookings can make these earnings unreliable. It’s also important to speak with your accountant and understand any tax implications this might create.
If you do intend to rent out your holiday house, you will want to consider the location carefully. Do your research and look at the amenities available, as well as the projected market growth in the area.
While your chosen destination might see a flurry of activity during the festive period, properties may have low occupancy rates for the rest of the year.
Seek professional support
If you are looking to buy a holiday home and need some finance to help make the dream a reality, seek advice from a trusted mortgage broker.
A Liberty Adviser can help you weigh up the pros and cons of buying a holiday home and find a loan that fits your individual circumstances.