Five Reasons to Invest in Your Own Holiday Home

Five Reasons to Invest in Your Own Holiday Home

Whether it’s for reasons of business or pleasure, buying a holiday home can prove to be a canny investment.

In fact, according to this article from, holiday homes could earn you as much as three times the income that you could earn from a standard buy-to-let!

But they’re not just a financial investment, and there are a number of reasons why a holiday let could be a good idea for you. We’re going to take a look at five.

Return on Investment

Of course, one of the main reasons people buy holiday homes is for the impressive return on investment that they offer.

As we’ve already mentioned, holiday homes in certain areas can offer much higher yields than normal buy-to-let properties, and relaxed taxation.

Holiday homes are occupied for around 30 weeks a year in total, but during these weeks will bring in a high rental income, dependent on location, with the average two-bedroom cottage producing between £12,000 and £15,000 a year according to this Telegraph article.

Tax relief

Another big attraction of holiday homes is their attractive tax laws. Recent changes to tax regulations have hit buy-to-let investors over the last few years, but thankfully, these changes to tax relief don’t apply to furnished holiday lets.

From April 2017, buy to let owners on higher tax rates will no longer be able to claim the 40% and 45% tax relief that they can now, with a flat rate of 20%, although this won’t apply to holiday home owners.

You can read more about how the changes will (or won’t!) affect holiday homes here.

Be your own boss

Owning your own holiday home means that you’re your own boss, so you can rent it out whenever suits you, and use it for you and your family when it isn’t booked, which is great for the odd weekend break away.

You also have the flexibility to use the property as your permanent residence further down the line, or perhaps pass it down to your children.

If you wish, you can also hire a professional manager or agency to handle the property for you, sorting out the marketing changeovers, cleaning and maintenance.

This is a popular option for those who live some distance away from their holiday home.

Rise of business travellers

There’s also a slightly surprising new demographic who are choosing to hire out holiday homes.

According to Pure Leisure, business travellers are increasingly booking self-catered accommodation for short term trips, and the rise of sites such as Airbnb have put many off the traditional hotel room.

Offering the comfort of a home away from home for business travellers could be a good way to make some extra income.

Cover your expenses

One of the things which puts many people off buying a holiday home is the running costs which are associated with the property.

However, by renting it out, you’ll be able to cover the costs while the property is empty and take some of the pressure off.

We hope this has given you some insight into the benefits of owning your own holiday home, and perhaps cleared up a few things if you have been considering investing in one!

Categories: Holiday

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