How And Why To Invest In A Holiday Home #CP

Investing in property can mean many different things. It can mean buying a block of apartments to rent out to people in the city. Or, it can be investing in a holiday home of your own to enjoy as well as make money from.

Doesn’t the second option sound better? You can get to enjoy the home yourself while making money on the side. 

Hence, here is how and why you should consider putting your money into a holiday home. 

Holiday Home Summer House - Free photo on Pixabay

The Why’s

When people have spare money that they want to invest, it can be quite overwhelming to choose the right area of investment. 

With holiday homes, there are many benefits and reasons as to why they make for a great investment. Here’s more:

Enjoy the home while making money on the side

Let’s say you love to visit Cornwall everywhere and find it a nuisance to find the right place to stay. Instead of worrying and spending money each time, you could own your own holiday home and enjoy being able to visit Cornwall whenever you wish to. Although it would involve a bigger cost, it would be upfront and you will never have to spend another penny on accommodation for you and your family/friends.

You will be able to visit whenever you wish. Yet, if you want to rent it out to earn extra money, then you can visit when it is free. 

Hence, renting out the holiday home will help you make back some money on your investment. Either way, you will get to enjoy being able to holiday in Cornwall whenever you fancy it and make some money on the side. 

A healthy return on investment

A holiday home will always guarantee to make for a healthy return on investment. People that go on holiday will always be looking for a great place to stay. Hence, there is a high chance that your home will be rented out. 

To maximize your ROI and interest in your property, it can help to:

  • Make it attractive. Making your holiday home attractive will ensure to win over customers. If you boast great interior and cleanliness, then it will have a greater chance of winning over a customer than a property that isn’t very well cared for. Hence, always make the effort to keep it clean, tidy, and attractive to maximize interest. 

  • Promote the property on several holiday home websites. To maximize the visibility of your holiday home, it will help to promote it through multiple holiday home websites. Doing so will increase your audience and help more people discover your property through their website of choice. 

  • Offer competitive prices. Although you will want the most amount of profit possible, it is important to offer competitive prices. If your prices are too high, then you will likely lose customers to properties that offer more affordability. Ensure to research the local area and the prices that other properties are to ensure that your price is fair and attractive.

Start your own business

Should you be interested in starting your own business/passive income, then holiday homes are a great step in the right direction. 

Starting your own business can be easier if you can invest your own money and take the time getting to know the ropes. Unlike other businesses, you can take your time by renting out the property a couple of times a year. Once you understand the market and recognize the profitability, then you can take it a step further and either buy more properties to rent or increase the offerings of your current holiday home. 

It is a great area to invest in, especially if you want to start your own business in the world of property. 

Sit back and let someone else do the work

Or, if you are someone that wants the profit and little to do with the financial/admin side of the rental market, then you can let someone do the hard work for you. You can sit back and ask experts to promote your listing, sort the finances, and deal with customers. 

You could either promote using Airbnb, where the site will do most of the work. Or, you can hire an external source to help your business grow while you enjoy the healthy ROI. 

The How

Now that you know the great advantages of owning and renting your own holiday home, you might be looking to understand how to do it. Following these steps, you will be able to successfully buy and start renting your own holiday property to customers. 

  • Pick a property. When you start this journey, the first step will be picking a property. This will involve doing your research into popular areas for tourists. Picking a holiday home in a popular tourist spot will ensure a healthy ROI. When looking at the property itself, ensure that it is in a healthy state or can easily be transformed so that it is safe, attractive, and convenient for holiday home customers. 

  • Flexible accommodation. To offer the best holiday home and attain a high ROI, it will be useful to look for a property that can offer flexible accommodation. This could mean being able to rent out the downstairs to one group and the upstairs to another, all while they can stay separate and private. Or, buy a property with a small annex for couples that want a small and affordable trip away. 

  • Ensure you can rent it out for the right time each year to reap the tax benefits. Holiday homeowners can only reap the great tax benefits if they can rent out the property for at least 210 days each year. Ensuring you can offer this will ensure that your finances will be maximized. 

  • Make sure you are doing the right thing for your finances. You might be someone that wants to use the holiday home a lot and make a small income on the side. Or, you might want to make it a business. Either way, you need to decide this beforehand so that you go into the investment with the right mindset and make the right financial decisions. 

Karl Young

Part-time daddy and lifestyle blogger. Father of 2 boys under 2. Golfer, scare-fan, tea-lover, traveller, squash and poker player. I write on the @HuffPostUK

No comments: