Do you and your family love one vacation destination in particular? Then maybe it’s time to look for holiday homes for sale east Yorkshire (or wherever else you are wanting to visit). Using it as your holiday home, you’ll be able to reap the benefits that come with having a property in a busy tourist area.
A place that you’re familiar with the community, nearby amenities and more, you won’t have to worry about bringing all of the usual travel essentials with you as you’ll have everything ready for your stay within the property. But before you take the leap, there are certain things that you should consider.
To help make the process a little easier, here are some pros and cons that you can use to make your final decision:
Pros
You Can Rent it Out
If you’ve bought the property, you’ll be able to rent it out easily throughout the year. Plus if you have a great location and amenities to offer, as well as good reviews from previous guests finding tenants is a piece of cake. Having a tenant screening checklist can also help you avoid any potential problems, so be sure to check this helpful tool for landlords before approving any potential renters. Even if you’re renting it, some landlords will allow you to sublet it out, as long as you give them a portion of the profits.
This handy benefit will give you a little bit of extra money each month and will ensure that your holiday home is being used throughout the year when you aren’t there – this will, in turn, help with security as it will deter any burglars.
It’s an Easy Place to Escape To
By taking the leap and owning a holiday home, you and your family will have somewhere wonderful to stay whenever you want to. An easy place to escape to throughout the year, you won’t have to worry about paying for accommodation, and with plenty of available lodges for sale near york (or even near you) with amazing scenery, your luxury holiday home can be your relaxation heaven! This financial saving benefit is perhaps one of the top reasons why so many people around the world own holiday homes.
Marketing is Simple
When you want to rent out the property for days and weeks at a time, you can do so through platforms such as Airbnb. An easy way to market your home, you can achieve a good amount of extra income.
When ‘renting’ your holiday home out through platforms like Airbnb, however, you’ll want to look into how much money they will take from the sale and how much you’ll need to spend on cleaning fees.
Lots of Options
One great benefit is that there are millions of holiday homes available worldwide. Whether you’re looking for a property to rent in Singapore, in Europe or another destination, you’ll be able to find one that’s suitable for you. This flexibility is also convenient if you’re looking to eventually relocate to that destination in the future.
Cons
It Can Be Expensive
Unfortunately, owning a holiday home can be expensive. Of course, this will depend on the location you choose, but in general, you’ll have to either have a lot of savings in the bank or you’ll have to apply for a mortgage. When it comes to financing a holiday property, for a mortgage you’ll have to meet very tough criteria in order for the lender to approve a mortgage for you.
When deciding as to whether they should approve you, they will look at if there are any environmental issues, social issues, etc. in that area – for example, if it’s within a flood zone or the area is prone to tornadoes, it will be harder to find a lender that will give you the money for the mortgage. As well as a mortgage, you’ll also want to think about what insurance you will need and what tax you have to pay.
A lot of Upkeep and Maintenance
Like any home, a holiday home will require upkeep and maintenance over time. If you only visit the property every few months, you’ll therefore have to consider who will maintain it – such as a cleaner. Also, if you plan on renting it out, you’ll want to ensure that you’re only renting it to trustworthy people and that they leave the home in a good condition when they leave.
You might find that you’re visiting the home more frequently to either clean, check the condition of the property or to undertake general maintenance to it – such as changing bulbs or fixing any other issues that arise.
Other Additional Costs
As well as the maintenance costs, you’ll also have to take into account any other costs such as ground rent or service charges. Of course, if you’re renting it out throughout the year this extra income can help to cover these, but if you haven’t received much interest each month, you’ll find that the costs are rapidly adding up.
You’ll Need to Know The Local Market Inside and Out
Even if you know what the local community is like and you’re very familiar with the area, you might not know what the property market is like. This is imperative, as not only will you need to know exactly how much to budget for the sale, but you’ll also need to have knowledge about it incase any legal implication crop up throughout the different stages of the purchase.
For example, there are certain countries which are known for being harder to buy in due to the restriction on the land and the properties themselves. Even if your holiday home is in a location that’s close to you, there could be certain legal and financial issues within the local real estate landscape that you should be aware of.
Therefore, it’s vital that you read up on the process of buying or renting a property in that country before you make your final decision – and that you seek the advice of a local real estate agent if you’re unsure.
Final Thoughts
So, there you go! Those are some pros and cons that come with owning a holiday home. The final decision you make, of course, is up to you. But it’s vital that you’re aware of all of the costs, stages and more before you buy.
Don’t let the ‘cons’ get you down though – as owning a holiday home can be very lucrative and a wonderful step for your family to take!
This is great information, but I think I'll stick with hotels. Much less work, lol. Thanks for posting!
ReplyDeleteThese are great tips but I live in a rental as is. If I could do this I doubt I would rent it out because that in itself would be a headache.
ReplyDeleteYou're right, renting out a rental doesn't work. This post is meant for people looking to buy a second home. I personally think property is a great investment.
DeleteIt would be amazing to own a holiday home. Even though there is some time and work involved in upkeep and renting it out, it would be worth it!
ReplyDeleteIt would probably be more work than I'd personally be up to, with the renting and maintenance. Still, it would be so nice to be able to go to your own home on vacation.
ReplyDeleteAt one time we thought of buying into a timeshare so we had somewhere to go to to getaway. Once we started to have a family the idea grew dimmer and then fizzled. We could have never afforded a second home. Let alone keep it up. I pinned this for others to check out. Thank you for sharing!
ReplyDelete