We all love a good holiday, right?
But does it make good sense to invest in a holiday home?
Well, that all depends on your investing goals and strategy.
If you’re building a legacy for your family and want to leave them a home full of wonderful memories, this could work. If it’s in a location with strong capital growth and high rental demand, that could work too.
But if you’re renting it out on a short-term basis, whilst your income will generally be higher, you could have long periods of vacancy, your property management, maintenance and cleaning costs will be high compared to a regular long-term lease.
You may also want to maximise the return on the property by renting it out during high season – which would generally be the time you also want to use it, so you’ll have to decide if you forsake the holiday or the income.
There are definite pros and cons for investing in a holiday home but it all comes down to the “why”. Why are you investing? What do you want to achieve from investing in property? How will this property (or any property) help you achieve your goals?
Don’t go in full throttle. Stop, take a breath, do your research on the local sales and rental market, talk to agents, property managers, short term agents and locals. But most importantly, talk to your financial planner.
#buythatinvestmentproperty #buythathouse
