Investing in property is the big business at the moment. Buy to let properties are a brilliant way to make good returns on your investments and most people tend to go for them when they are looking for somewhere to put their money. But that isn’t the only kind of property that you can invest in. Holiday homes are another popular choice because people can get use out of them themselves, as well as renting them out for extra income. There are downsides so it depends on your personal situation, but you could make some good money out of a holiday home. If you’ve got a load of money lying around and you’re looking for something to do with it, these are the pros and cons of investing in a holiday home.
You Can Use It Yourself
Some people see this as a good thing, and others think it’s a bad thing. Certain investors prefer to go for a residential property because they want it rented out all year round so they have a constant income from. But others prefer to get a holiday home so they can use it for themselves and their family some of the year and rent it out the rest of the time. This means that you’ll save money on holidays as well as bring in some extra cash. The benefit is that you don’t need any planning or savings to go on a spontaneous holiday. Any time you fancy it, just get in the car and go. You need to decide which side you’re on and whether you’d want to go to the same place for holiday every year.
When you’re older, you also have the benefit of being able to move there permanently. Facilities like Crystal Lake homes have plenty of amenities to make your life easier when you’re a little older. A quiet vacation home is the perfect place to retire to.
The most obvious benefit is that you can increase your income by renting the place out. You can charge higher prices for a holiday home than you can a residential property, but the only downside is that you can’t guarantee that it will be rented out all year round. This might not be an issue for you if the holiday home is a side project for you, but if you’re planning on making your investment your main source of income, you may want to consider a residential property which will give you a more stable income.
The money you get from renting the place out should offset any maintenance costs you have, making it a fairly inexpensive property to keep. However, you might struggle to rent it out during the off season so you could find yourself losing money there.
After you’ve paid off the mortgage on the property, you’ll have a money pot that just keeps growing. The price of property is rising a huge amount year on year so who knows how much that holiday home will be worth in a few years?
A holiday home is a good investment, but only if you are willing to deal with an irregular income from it, and don’t rely on it as your main funding stream.