A holiday home is an undisputable lavish asset for summer or Christmas getaways with friends and family or a retreat for weekends. Buying an Ilucmajor Villa in your favourite holiday destination gives you a chance to enjoy your vacation, and it’s a good investment that can build your wealth. However, you need to consider some factors before buying your holiday home.
Here are factors to consider when buying a holiday property:
It is essential to prioritize location when buying a holiday home. Choose an area that will be easy to adapt to as your second home. It will help if you spend some time on the place you are considering buying your holiday home to assess whether it will be the best for you.
For example, if you love fishing, you should consider buying your holiday home in an area that will give you the best fishing experience. Choose a location that will provide you with enjoyment based on what you love. Buying a holiday home is a long time commitment. Unlike hotels, you cannot just move to another location when you become tired of the area or the house.
Ensure you buy your holiday home in an easily accessible location. Choose a place with good infrastructure. Ensure there are good roads if you will be driving around the area. You might not like catching two flights or driving long distances to reach your holiday home from your first home.
A vacation home is an investment just like any other, so you need to consider costs when buying it. Also, you should consider additional costs like electricity, property management and maintenance. A dream holiday home can become an ordeal if the costs involved are way too much above your budget.
In some places, taxes on holiday apartments are too much compared to other investments. Hence, you need to consider taxes when buying holiday property. A holiday apartment located near towns or tourist attraction areas is likely to cost more than those located far away.
3. Management of property
It is more likely you will be spending on weekends or a few weeks on your holiday home. You will need to hire a property manager to take care of your home when you are away. A good property manager will take care of maintenance issues and maximize profit from rentals.
Also, they will ensure the property is clean and full occupied when you are not around. Hiring a property manager to take care of your property is essential as you will not incur many costs doing repairs.
If you will not spend most of your time on your vacation home, it is not good to leave your property unattended. You need to consider security to protect your investment. Ensure you buy your property in a secure place. You should consider hiring a security firm to patrol your property or install security cameras and alarm systems. Also, you should consider installing security gates and doors to ensure your property is safe.
5. Capability to create wealth
If you can earn income from your holiday home at the same time enjoying yourself, then you will have achieved double benefits from your investment. However, his cannot happen by chance. Before buying a holiday property, ensure it can attract other holidaymakers to make your investment profitable.
You should access the area you are considering buying your vacation property if it can attract many holidaymakers. Ask the local agents the average rents and occupancy rates for similar apartments like the one you want to buy.
Most holiday locations experience high seasons. Therefore, you can increase rent rates on high seasons to meet the increased demand for rental apartments. However, if the high season collides with your enjoyment times, you might need to forgo the rent income to enjoy yourself, and you should factor this in your calculations.
When buying a holiday property, you need to be clear if you want to make wealth from the property or for your enjoyment. You should consider location, costs, security and property management when buying your vacation property. Also, ensure you buy a property that is not above your budget. Finally, before purchasing the vacation property, you need to think of long-term goals and make a wise decision.
Remember, never travel without travel insurance! And never overpay for travel insurance!
I use HeyMondo. You get INSTANT quotes. Super cheap, they actually pay out, AND they cover almost everywhere, where most insurance companies don't (even places like Central African Republic etc!). You can sign-up here. PS You even get 5% off if you use MY LINK! You can even sign up if you're already overseas and traveling, pretty cool.
Also, if you want to start a blog...I CAN HELP YOU!
Also, if you want to start a blog, and start to change your life, I'd love to help you! Email me on email@example.com. In the meantime, check out my super easy blog post on how to start a travel blog in under 30 minutes, here! And if you just want to get cracking, use BlueHost at a discount, through me.
Also, (if you're like me, and awful with tech-stuff) email me and my team can get a blog up and running for you, designed and everything, for $699 - email firstname.lastname@example.org to get started.
Do you work remotely? Are you a digital nomad/blogger etc? You need to be insured too.
I use SafetyWing for my digital nomad insurance. It covers me while I live overseas. It's just $10 a week, and it's amazing! No upfront fees, you just pay week by week, and you can sign up just for a week if you want, then switch it off and on whenever. You can read my review here, and you can sign-up here!