We all dream of investing in a holiday property. If you and your family go away often, a holiday home could save you money. No longer will you have to book accommodation for each trip. Your holiday home also offers the chance for spur of the moment holidays if the mood takes you. If this is something you’re considering, it’s important you get things right. Investing in a second property will increase the cost of your mortgage. Take time and think before you jump in.
SET YOUR BUDGET
Budget is the most important factor in any house purchase. Working out what you can afford will save you getting in a fluster with your finances later down the line. Talk to a mortgage advisor and work out what price house you can afford without breaking the bank. Remember, too that you’ll need a chunk sum deposit behind you. You may have to save up for a little while before you can make a move. Take a look at the house prices you’ll be working with to gain a realistic idea of where your finances need to be. If you’re not there yet, take steps to achieve the goal. This holiday home is a long term investment, so your efforts will pay off in the end.
CONSIDER RENTING THE PROPERTY
If your finances aren’t up to scratch, consider renting your holiday home during winter. Doing this will make the most of your property investment, and will help you afford your dream. You won’t have to worry about those extra mortgage payments when you have rent coming in each month. Bear in mind that you won’t be down the road from your property should your tenants need you. It’s well worth entrusting the tenancy with a letting agent who can deal with any queries for you. There is a fee for the service, but it will save you having to make the journey. Bear in mind, too, that you won’t be able to pop to your holiday home whenever you fancy. It will be worth it, though!
CHOOSE A LOCATION
Once you’ve got the financial side under control, you’ll need to consider a location. First on the agenda is whether you want to buy at home or abroad. Buying abroad is often cheaper, but there are extra costs that make up that difference. Not to mention that you’ll be paying for flights each time you visit, so the investment won’t be so great. If you’re set on sunny skies, take a look at house prices abroad, and decide on a location for you. Get to grips with the housing market in your chosen country, and see what costs would be involved. If you’re happy to stay on your home turf, take a look at the options there, too. You should already be familiar with the housing market, so get searching straight away. Consider the prices of different locations. And remember, desirable areas are going to be expensive! Looking further afield is always worthwhile.