Are you thinking about buying a holiday home? If you are in a financial position to do so, this could be a smart move and improve your life in more ways than one. Of course, it is also an enormous financial commitment to make and not one which should be made lightly, which is why it is helpful to be aware of both the pros and cons.
Pros
You Can Rent it Out
One of the major benefits of buying a holiday home is that you can rent it out, allowing you to see a return on your investment and a passive income stream. With the surge in staycations and walking holidays, now could be a great time to buy as people are realising the many benefits of having a holiday in the UK.
Second Base
A holiday home also means that you have a second base, and this is a fantastic feeling. Being able to escape to a second home is a real luxury and can improve your wellbeing by providing you with a different location to visit, and again this is particularly beneficial in times like this.
Takes the Stress Out of Holiday Planning
While you do not always have to use the second home for a holiday, you will find that it can greatly take the stress out of holiday planning and once it is paid for you do not have to worry about the costs either. Having a holiday home, allows for spontaneity too, for instance if you suddenly decide to take a week off, you have somewhere to go for a break.
Cons
It Can be Expensive
Obviously, the cost of a second property can be difficult to manage especially if you have mortgage payments to make already. Buying a second property can stretch you quite thin and could change your financial situation, especially in the short term, when you are not getting bookings and the property may require some work. There are then also the running costs to factor in which can all add up and make it a large investment to make.
Feel Obliged to Holiday There
As mentioned earlier, you do not always have to go on holiday to your second home but you might feel obliged to. If you are the type of person that likes to explore and try new places, a holiday home may not be the best move unless you only plan on renting it out.
Seasonal Income
While it is a passive income stream, you will also find that it is largely seasonal so there are likely to be quiet periods in spring and autumn while winter may be slightly busier. Most people will book in for summer, which could also make it hard for you to find a free weekend to stay.
These are the main pros and cons of owning a holiday home. Hopefully, they will help you to make the right decision based on your situation.
