The idea of owning a holiday home creates visions of luxury. Who wouldn’t want a place where they could spend their vacations in peace and stay in any time they needed and escape? However, owning two properties can seem daunting and expensive, so a lot of people might never realize their holiday home dreams for fear it will be too much to deal with. For example, if you happen to be in the timeshare vacation ownership industry, you may see that the average maintenance fee for timeshare will likely increase every year.
If you have been considering getting a holiday home but aren’t sure if it is right for you, below are some pros and cons to consider:
Pro: You Can Rent it out and Make Money
The cost of purchasing a holiday home is one of the big turn-offs, but if you’re happy to rent it out to other holiday goers when you’re not using it, you could easily pay off the mortgage and cover maintenance costs. The majority of people who do own holiday homes do this as it makes it a lot easier to afford the property, and once everything has been paid off, it’s just a way to make some extra cash.
Con: It Can Be Hard to Keep an Eye on the Property
Even if you purchase a holiday home in a good, safe area, there is still the chance of break-ins and vandalism, whether that be from criminals or disrespectful house guests spending their vacation at your place. In addition, if you don’t live close to your holiday home, it isn’t always easy to check up on it regularly. You could install security cameras and alarm systems which would be wise, but you might have to ask a neighbor or someone else you trust who lives in the area to check on your house for you when you’re not there.
Pro: You Can Turn it into a Permanent Home
You might be happy living where you are right now, but what about the future? One of the perks of having a holiday home is the potential to become your permanent home if you want to relocate for a change or plan to live there once you retire. It’s always nice to have the option to live elsewhere if you want to.
Con: Costs of Owning a Second Home in a Foreign Country
If you are going to purchase a home abroad, there might be some complications regarding taxes and rights over your property. Therefore, you must always look into it before you purchase a house abroad. If in doubt, ask your estate agent about these regulations to clarify things for you. This Costa Rica real estate group is a great example of how they can assist you with purchasing a property abroad, explaining foreign citizens owning property in the country.
Pro: Real Estate is Always a Good Investment
Even though you might wonder how much use you’ll get out of your holiday home, real estate is always a good investment. As mentioned above, you can rent out your property to others to make your money back, and if you put effort into maintaining and improving the property, you could even sell it in the future for a profit. If you can afford to buy a second property to use as a holiday home, it is likely to be a good investment one way or another.
Having a holiday home is certainly a luxury, but one that you can get a lot of use out of and enjoy with friends and family for years to come. So, if you’re in the position to purchase a second property, think about the list above and if it could be the right choice for you.
*Photos by Tara Winstead