The December holidays are around the corner and the weather is pretty awesome. Many individuals considering investing in a holiday home. Whether you want to buy or rent, a holiday home is a great investment that requires a lot of commitment. Therefore, this isn’t the kind of decision you just wake up and make. You have to think about it thoroughly and weigh all the possible pros and cons.
So if you’re thinking of renting or owning a holiday home this year or sometime in the near future, here are some of the things you must know to avoid falling into the wrong trap;
How Well Do You Know The Property?
It’s one thing to view pictures of your dream property online, like it enough to want to buy/rent, and another to take a physical tour of the place. Remember pictures can be deceiving and the internet is filled with all types of sellers. Genuine and the not so genuine. So it’s advisable not to think of paying for a holiday home before you visit the area. In fact the more visits you, make the better for your own peace of mind. This will help you ensure you are deeply in love with the place and wouldn’t get bored after a few days. After all, you’re planning on spending a fortune, so it’s only fair that you erase all doubts.
Home Management Fees
As the name suggests, holiday homes are meant just for that; vacations. So this means that you won’t be spending most of your time here. Therefore, since you will still need to keep your property in perfect condition even when away, you will have to find someone to manage it for you. Who will that be? Will you need more than one person? All this will depend on the size of your home and of course the budget at hand. But do ensure to find an affordable local property manager to do it for you. You don’t want to deal with frozen pipes on your next visit.
A Rental Income Option
This majorly applies to individuals who want to buy holiday homes. Since every day won’t be a vacation time for you, you might want to utilize the property for the time when you will be away. In this case, incorporating a rental income option is one of the smartest moves you could ever make. After placing your home under a competent manager, you can now think of letting holiday renters on board as a way of offsetting some bills. But this can only happen if you considered these logistics in your choice of property.
If this seems like an option you can take, then check out the surrounding vacation homes and agencies for income estimates. You can also get information on how often renters emerge.
Will It Meet Your Needs?
When considering this, you should focus on both your current and future needs. Your children won’t remain young forever. They will grow, become teenagers and want a space of their own whenever you on vacation. Remember teenagers’ needs are different from those of toddlers. You too won’t remain young forever and the same case applies to other extended family members.
For instance, if both/either of your parents lives with you, then a few years from now they might have a problem climbing the stairs. Is there a room downstairs for them? According to https://www.interhome.co.uk/, staying in a holiday home or apartment offers so many advantages. It allows you to live life the way you want. So ensure that all your family members are comfortable with investing in a home that is flexible for growth.
Calculate All Your Costs
When you decide to rent or buy a holiday home, the effect on your budget isn’t only about the house but the entire ownership responsibilities. Like your permanent residence. You will have to consider insurance costs, taxes and other hidden costs that might not be included in the price tag. For example, whether you choose to spend or not spend a few days there every month, you will still have to foot all the utility bills. And of course, this also includes the maintenance fees. Therefore, before jumping at that luring offer, you better place all this into consideration and select a home whose needs you can meet. It shouldn’t drain you financially.
Owning a holiday home is a dream that most homeowners wish to fulfill. But like any sort of investment, there are a few things you should keep in mind before committing yourself. Start by physically visiting the property so that you get to know it well. Ensure it meets both your short-term and long-term needs and looks at all the financial options it presents. You must ensure your investment will be worth it!