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For many millennials, the idea of becoming a homeowner in the first place feels like a major goal – let alone owning multiple properties. However, it’s certainly not impossible. You don’t have to have paid off the mortgage on your first home before investing in a second – and if you choose wisely, your holiday home could also be a lucrative earner for the fifty weeks of the year you aren’t using it. Buying a holiday home is not necessarily an extravagant luxury; it can also be a shrewd financial decision that comes with the added benefit of access to sun, sea, and sand. Follow the tips below, and you’ll soon see you have nothing to lose!
Choose Your Location
The first thing you’ll need to do is decide where you want to look for a holiday home. At this point, the world really is your oyster, though you may need to make compromises depending on your budget as you search for the perfect place. For a lucrative holiday home, you’ll need to be able to rent it out to other travelers whilst you are not there, and the location is a very important part of that. By choosing somewhere that many other people will want to visit, you’ll be ensuring your home is kept earning its keep. It’s also worth considering the year-round value, as places with a short holiday season will be less lucrative than those where people visit in summer and winter, or all year round.
Once you’ve found the perfect location, it might be tempting to save money by investing in a cheaper property. ‘It doesn’t matter’, you think, ‘I’ll spend most of my time at the beach anyway’. This is a mistake. When people choose their holiday destinations, they care about the luxury and value of their accommodation. To make the most of this tourist market, it’s worth investing in beautiful villas or high-end apartments. You’ll make more money back in the long run, rather than being disappointed with low take-up across the year.
Investment First, Holiday Second
You may get carried away whilst searching for a holiday home. Perhaps a particular location holds emotional value for you – this is where your family holidayed as a child – or you fall in love with the quirkiness of a particular property. For this reason, it’s important to see your purchase as a business investment first, and a personal holiday home second. Your childhood holiday location may not be a popular tourist spot, and you risk losing lucrative letting opportunities as you are blinded by sentimental value. For a holiday home that truly functions as a sound investment, put your business hat firmly on.
Do Your Research
As with any investment of your hard-earned money, you’ll want to do thorough research before committing to anything. This includes location, property, local property managers, alongside market research regarding holiday lets and what accepted price ranges are for the home you’re looking at. Investing wisely in a holiday home can be a brilliant way to use your finances, with huge personal benefits, but only if you go about it smartly and with thorough research.