Have you found a spot where you can have a holiday vacation? Is there a house that you can buy for that purpose as well as for rental options? This is what you can do. Find a house in your holiday vacay, invest on it so that you’ll have a place to stay whenever your vacation comes but promote it for rental so that the cost of investment can be at least recovered. If you just got the cash but can’t find a property where you can invest it then, you can ask help from estate agents. When you have a property in mind, read this infographic so you can make your final decision on this matter.
1. Are you ready for investment? Before you earn, you need to invest and that would mean large cash out of your pocket. Investment in the property market is not liquid. It means that you can’t easily turn it into cash whenever the needs arise. Therefore, if your money is enough only for your monthly consumption, you may have second thoughts buying it.
2. Be a smart buyer. Since it is used only for holidays, you are staying on it more often. Why not offer it for rentals among travellers and vacationers? You get to have the house paid from rental income but the property is still yours to keep. When you opt for this, you must always look for rental going rates which could go up during peak times and go down depending on seasons.
3. Do not underestimate the price you are about to pay. The cost of buying the house per se is not yet the actual cost because you will be paying a lot of other fees such as property taxes, processing fees, insurance fees, furnishing expenditures and many other related costs. You may not feel its weight because you pay it in small amounts but when the cost is accumulated, it will actually eat up a lot of your budget.
4. As to your rental income, don’t be so optimistic up to the point of exaggerating possible income because there will be costs that you may not notice yet. One is advertising cost. Of course, you need to promote your vacation house or else it will just remain unoccupied. Other costs such as maintenance cost and cleaning costs can also take much of your revenue.
5. Will the house be far from your residence? How often will you be visiting the place? If you can’t go there frequently, your house will be left unattended and it might break down in due time. That’s why it is advised that when you buy a holiday home, it should be a place where you want to stay.
6. Don’t buy the house at first sight. You need to visit it a few times. Feel it and explore it by yourself. Remember that it’s a place where you will be spending your holidays. It is not like hotels where you can transfer anytime you want.
Download this infographic.