Buying a Holiday Home Guide

Profitable business, treasured home away from home, and very often a mix of both, a holiday home can be a fantastic investment to consider. Get the most for your money and enjoy your property for years to come with our helpful guide to buying a holiday home that’s right for you.

Is a holiday home a good investment?

A holiday home can be a fantastic investment so long as you manage your property well and ensure it sees plenty of use.

A report from Second Estates found that the average UK holiday home owner earns £22,281 a year from letting out their property, but that can be even higher if you own a second home in a popular holiday destination abroad.

The most profitable holiday home owners treat their property as a real business. You need to market your home, attend to your guests, and keep the property clean and comfortable.

There are hidden costs involved, though. If you use an agency to manage your holiday let, they will take a cut of the profits. You’ll also want to keep some cash aside for damages and repair, and factor in the cost of travel and taxes before you commit to buying. If you’re buying a holiday home for personal use, the financial reward might not be your number one concern. Make sure you consider factors like taxes, travel costs and resale value, but – most importantly – settle on a property that you love to visit.

Where to buy a holiday home

Your choice ultimately depends on what you want from the property, but being fond of and familiar with the area certainly helps!

If your dream is a remote mountain hideaway, that’s fine, but it’s perhaps not the most likely pad to turn a cosy profit. If your primary goal is to earn money, do your research on your intended destination. Is it easy to get to? Are there popular resorts and attractions nearby?

Buying a property abroad

Brits’ ten most popular foreign holiday home destinations are spread across mainland Europe and Turkey, with Spain comfortably taking the top spot. Sunny climes and cervezas by the sea have their charms, but if you’re buying abroad, take extra care over hidden costs and consider asking a professional to help steer you through the process.

Buying a holiday home in the UK

While the weather might be less dependable, buying your holiday home in the UK has some major draws. Spontaneous weekend retreat or emergency maintenance mission, the proximity means you can be there at the drop of a hat.

Can you live in a holiday home all year round?

UK law does not permit you to live in your holiday home for 12 months at a time. You need to decide what your permanent address is for council tax reasons. Your council tax is lower on a secondary residence, so you could be a burden on local services if you were living in a holiday home all year.

Your place in the sun

Besides having a place to stay in your favourite destination, buying a holiday home can be an extremely rewarding investment and is often much simpler than you might expect. Get started by learning more about our holiday home insurance packages.

This is a marketing article by Towergate Insurance.

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