May 4th, 2015.
Holiday Homes: Are They a Good Investment?
Asides from the obvious reason for owning a holiday home – who can resist the freedom to get away whenever you feel you need to? Holiday homes are more than just a luxury. Keep reading to find out more about the benefits of investing in a holiday home.
Generate an Income
A holiday home is an easy way to generate a second income; it’s almost like having a bit of pocket money! According to research, around 470,000 households own a home abroad, and most of these are no doubt used for both personal pleasure and lettings.
Owners will spend a sufficient amount of time in their holiday home and when they need to get back to ‘the real world’, they’ll let out their accommodation and earn a steady rental income which can help to pay for holidays.
Even if you don’t end up profiting largely from rent, it’ll still help in paying for things like insurance and upkeep on your holiday home, which ordinarily, you’d be paying for out of your own pocket.
Self-catering accommodation is in high demand so as a holiday home owner, you won’t struggle to occupy your holiday home, particular during the summer months.
Have Unlimited Access
When you own a holiday home, booking a holiday is a lot simpler. Why? You don’t need to faff around with booking accommodation online or finding your perfect place to stay and then realising that it’s fully booked during the dates that you want to go.
Providing your holiday home is unoccupied, (you will know if it is or not so this shouldn’t be a problem) you can visit whenever you like. This eliminates the need of advanced planning and allows flexibility for spontaneous family trips.
A Place to Retire
Whilst retirement may not be on the agenda for years to come, once the children have flown the nest and retirement is on the cards, a holiday home is the perfect place to spend the rest of your non-working life. In ideal situations, you’ll sell your family home in order to fund a retirement lifestyle.
Enjoy Capital Growth
If you invest wisely, you could profit from good capital growth when it’s time to sell up. How? Well, the property is likely to appreciate in value over time, particularly if it’s in a good location.
Good Locations to Invest
There are a number of property hot spots abroad but where are Europe’s top places to invest in holiday homes? Here are our top five locations:
1. Zagreb, Croatia – The capital of Croatia has a strong tourist rental market and moderate taxes.
2. Istanbul, Turkey – This city has moderate costs, moderate to high yields, rapid economic growth and low to moderate transaction costs.
3. Amsterdam, Netherlands – There are moderate yields in Amsterdam, a strong economy, moderate transaction costs and moderate rental income taxes.
4. Skopje, Macedonia – Skopje has high yields, pro-landlord rental market, low transaction costs and moderate income taxes.
5. Budapest, Hungary – Good yields, low to moderate transaction costs and a pro-landlord law.
So now you know the advantages of owning a holiday home, will you be looking to buy a second property soon? If you are, be sure to talk to our team of property investment and development finance experts for guidance. Call 02920 766 565 to speak to a member of our team of qualified finance brokers.