Buying a holiday home may seem slightly extravagant, but it could in fact be a good investment for your future. Here are just a few reasons to consider buying a holiday home.
Make money renting it out
Holiday homes are great opportunities for making money. You can rent them out to guests throughout the year, pay off any mortgage and bills and even make a profit on top.
For this to be successful, you do have to buy a property in the right location. This needs to ideally be somewhere that attracts tourists all year round with convenient attractions on one’s doorstep. Resort towns can be a good option, although they may have off seasons where few people visit (such as certain beach resorts in winter and ski resorts in summer).
The right type of property is also important. A luxury apartment such as these apartments at Elizabeth Quay Towers could be ideal. Alternatively, you could try buying a luxury villa such as these properties at Oyster Malta. You’ll need to provide high quality furnishings such as a comfortable bed and possibly amenities such as a hot tub if you want to charge higher rates. You can still rent out basic property to guests, but they’ll expect basic rates.
Sites like AirBnb are perfect for marketing your holiday home and booking guests. Other forms of marketing such as social media advertising and deals with tourist agencies could be worthwhile too. As for making sure that your property is cleaned and well maintained, you may not be able to do this if you don’t live nearby – hiring a local property manager could be essential.
Use it for your own leisure
Of course, when guests aren’t staying at your holiday home, you can use it for your own leisure. This could give you the freedom to book a last minute holiday whenever you fancy. As it’s your property, you also get to set the rules, making it possible to invite over as many friends and family as you want.
You can also choose all the décor to fit your preferences. Just be careful of making it too much of a home from home – too much personal styling could put off guests.
Retire there when you’re older
A holiday home could even be a place to retire to when you’re older. By paying off the mortgage now, you won’t have to worry about it when you finally come to retire. It could even allow you to keep your property back home, so that you’ve still got somewhere to come back to. Even if you decide not to move out there when you retire, you’ve always got the option to sell it and use the money as you wish.
This is a collaborative post.