Are you tempted by investing in a holiday home? If you’re keen to generate a second income, buying a holiday lodge, apartment or cottage can make excellent financial sense. As well being able to spend wonderful holiday time there with your family, you can also make a good return by renting out to others when you’re not using it.
It can be a daunting prospect if you’ve never managed a property before. The possible return on investment and practicalities might have you in a spin. Here are some pointers on owning a holiday home:
- Many people choose to invest in a second holiday home because the UK is become increasingly popular as a place to staycation. UK staycations were worth more than £23 billion last year. More of us are choosing not to go abroad or taking more than one holiday and choosing the UK as one of their favoured destinations. For stunning Park Lodges Gloucestershire, visit http://swallowlakes.co.uk/
- Changing tax rules affecting buy-to-let properties have put off many long-term let investors, so short-term lets are enjoying a boom.
- You don’t have to run things all on your own. There are many professional holiday letting businesses who can take care of all the nitty gritty for you. They can get involved in as much or as little as you want, with experience in things like marketing, maintenance and booking in guests.
- Return on investment obviously varies depending on property type, facilities, pricing and location but an annual return is on average in the thousands.
- The best locations for holiday lettings include coastal venues and those near National Parks earn around 10% more than other properties in the same region. Regions vary as well, with Dorset and Lake District scoring highly.
Best locations for a holiday let business
Current areas experiencing increased growth and popularity include the Midlands, the South Coast and Scotland.
Holiday lets do benefit from their proximity to elements such as stunning countryside, rural retreats, being set beside lakes or rivers, close to the beach or near major attractions. Depending on how much you want to be involved, you should factor in your journey time to the property too.
To get the best possible return on investment, follow current trends to see what visitors want. For example, for those looking for luxury, a property with a hot tub can earn up to 50% more than one without. Wi-Fi is a big plus point and holiday lets with an internet connection earn more by up to 20%. Other factors to consider include traditional log burners and making your property pet-friendly.