Is It Time To Invest In A Holiday Home?

Have you always wanted to own a picture-perfect slice of paradise? A place where you can retreat through the summer or even through the months of the year when people are still hard at work. It sounds like you might be a prime candidate for a holiday home. A holiday home is a beautiful investment that you can appreciate and benefit from for years, long after you actually make your purchase. Eventually, it can also become a solid little money maker, but that depends on how you decide to use it. For now, let’s focus on whether this is the right choice for you.

Do You Have The Capital?

The best time to buy a holiday home would be when you have the money to get at least a sizeable amount of the deposit paid in cash. This could be anything from five to twenty thousand depending on the size of the property. Remember, a larger deposit will mean a more attractive loan. Now, you might be in a position where you can buy the whole property with a cash purchase. This is an attractive option but it won’t be available for most people.

You should also be aware that even having all the money for the home isn’t enough. You will also need an emergency fund ready and in your pocket. An emergency fund will provide you with the cash you need to fix anything from a broken heater to damage caused by a hurricane. Your insurance should cover a significant amount of the cost, but it’s always worth having cash in hand.

Where To Buy

If you’re thinking about purchasing a holiday home, you should already have a vague idea where you want to own a property. So for instance, you might decide that you want to own a house by the sea. If that’s the case you should look at beach homes for sale. But you could be more specific too. It’s best to buy a property where you love going on vacation and that you're familiar with. This will provide two distinct benefits.

First, when you buy a property in this area you will want to go back to it time and time again. Second, you will probably have contacts and a good level of knowledge that will help you make the right choice with your purchase.

It’s always exciting buying abroad, but this might not be the best decision if you don’t have much experience or knowledge of an area like this.

Ready For The Responsibility?

Finally, if you’re renting it out you do need to be prepared for the responsibilities and the role of becoming a landlord. This ultimately means that you have to know you can deal with customer complaints, marketing the property and making sure that everything runs smoothly. It’s true, that you can hire a property manager to do this, but that’s going to add to your costs. If you want to keep outgoing bills low, it’s best to handle this role yourself.

Have a listing you think should be featured contact us or email at Jeremy@offthemrkt.com to tell us more! Follow Off The MRKT on Twitter and Instagram, and like us on Facebook.