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Is a holiday home a good investment?

A holiday home can be a great investment. It is always important, however, if you want your holiday home to be as good an investment as possible that you manage and maintain your home from home to the highest standard you can. It is also important that your holiday home gets as much use as possible.

A report from Second Estates found that the average UK holiday homeowner earns £22,281 a year from letting out their property, but that can be even higher if you own a second home in a popular holiday destination abroad.

To make you holiday home the best investment, it is important to treat your second home like a real business. This means you need to market your home, attend to your guests, and keep the property clean and comfortable. This of course comes with hidden costs. For example, if you use an agency to manage your holiday let, they will take a cut of the profits. You will also want to keep some cash aside for damages and repair, and factor in the cost of travel and taxes before you commit to buying. Please make sure you consider factors like taxes, travel costs and resale value, but – most importantly – settle on a property that you love to visit in an area you absolutely adore time and time again.

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