Almost 40% of the British population have sufficient funds to buy a holiday home this year. In fact, over a quarter of the population is considering purchasing a staycation home before Brexit happens as a way of protecting their family in the event of a damaging deal - or no deal at all. Holiday homes are, ultimately, a profitable investment if you know how to manage it effectively.
However, if you're not in a position to buy a cottage by the sea without applying for a high mortgage and managing your expenses carefully, purchasing an additional property can feel like an unnecessary gamble. Is it worth investing in a staycation home for your family?
Buy your summer house and share it with holiday-goers
Yes, you save money if you've got a favourite place
First of all, if you have a favourite holidaying spot which you visit regularly, it's a good idea to consider investing in a home away from home. As a rule of the thumb, the typical British family spends around £4,800 with two children for a two-week break. You can imagine how quickly the cost increases when you have more children or a pet. Additionally, when you're renting out for the holiday, you have a tendency to eat out more often. After all, nobody feels completely comfortable at the idea of cooking in someone else's kitchen. Between food on the go or restaurant bills, your holiday budget is overstretched. In the long term, having a holiday home can save you money on accommodation and also encourage you to cook more.
You can start small and upsize
With holiday homes, the property ladder principles apply. You can start small and grow as soon as you've secured enough funds. For instance, your first holiday home can be a flat in Wales, facing the sea. You can then sell it using services such as https://www.flyinghomes.co.uk/ which make you a fair and quick offer based on property value. This can help you to finance the purchase of your next holiday home!
You can let the rent pay for itself
Holiday homes can generate a highly profitable ROI. Indeed, staycations in the UK bring around £24 billion to the industry, https://www.propertyinvestortoday.co.uk/breaking-news/2018/8/how-to-get-the-best-roi-on-your-holiday-let. In other words, your holiday home can pay for its mortgage if you plan strategically. Choosing a popular location is detrimental to your investment return. Did you know, for instance, a buying a property with a coastal view can boost your revenue by 10%? Picking a favourite area of holiday-goers will ensure your property can welcome many guests throughout the year. Last but not least, you need to research and compare holiday home prices to stay competitive while remaining profitable.
Making it fun for all
Last, but not least, it's your second home. You should decorate it with great care and attention to details so that you and your guests can feel welcome. The biggest mistake you can make is to keep your interior impersonal and cheap. Investing in the equipment you need - from a playground space in the garden for children to quality saucepans in the kitchen - will also create a positive impression on your guests.
Financially speaking, a holiday home is a smart investment, as long as you can find a touristic destination. But, as it creates a home away from home, it also offers a sense of peace and relaxation that you can't find in a typical rental.
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