Investing In A Holiday Home – What You Should Know

by Adam on August 22, 2017


Everyone’s major dream in life is usually to have somewhere beautiful to retire to when they finish their working career, with a large amount of achievements behind them to remember and feel proud of.

Luckily, the second home market is booming, and purchasing one now is just as wise a decision as ever. If you have the funds to secure a loan or purchase outright, you might just benefit from purchasing now and seeing if you can improve the properties for when the economy gets stronger in the future.

Most people purchase a holiday home to go to either end of the weather spectrum. Some opt for cold weather conditions where they might be able to pursue an extreme sports hobby, while others might prefer staying in a more relaxed, sunny environment where they can party and sit on their porch drinking wine until the late hours of the day. For this reason, many people opt to stay in France or Spain if opting for a European home. Not only are the cultures laid back, but historically and from an entertainment perspective they have plenty to offer.

Here’s what you need to know.

stamp duty change 2016Picking A Location

Choose where you’d like to most go. Remember, purchasing a holiday home is much different from purchasing a standard holiday. It will fix you in one location for as long as the deed remains in your name. It’s worthwhile visiting a place at least 3 times before you purchase the home there, because spending a week or fortnight in a place really isn’t enough time to give you a solid picture of the surrounding environments.

Marbella has gained a reputation for being one of the most beautiful destinations to relax and party. No matter what you have, this Spanish city and resort caters to hundreds of thousands of people worldwide each year, and as such has its own booming local trade and culture that can only be experienced to be believed. Luckily, there is no better time than now for you to do so. This example serves as a reminder that sometimes, the most obvious places are the best places to purchase a holiday home. In this instance, plenty of Marbella apartments exist to give yourself and your family that feeling of pure luxury you are after in the location you love. These areas do not get ‘famed’ by accident.

house questionRenting

While you might only visit your holiday home a few times a year, this doesn’t mean you should deter from a purchase. True, you might not be living there all year, but that doesn’t mean the property can’t serve a purpose in the meantime. Remember, in the popular holiday destinations, you might find that people are holidaying there all year. In this instance, you might find that renting your property out can help you earn money and pay off the investment while you work from home. Who knows, following this method may even pay for your vacation the next time you visit.

Sites like Spareroom and AirBnB have a standardised and now vast format popularised all around the globe to find potential holidaymakers property. Through these avenues, you will be sure that your rental investment is protected through insurance, and that you only attract those you vet beforehand. If you can’t quite justify the cost of a holiday home, this idea should soften the blow for you.


Remember, a holiday home might not only be for you at this period of time. When your children grow up, you might find that allowing them to vacation to the holiday home, in an area they know and understand can help them both save money while also give them that independence and safety you truly want them to have when they start branching out on their own. Keeping a family asset like this will not only prove fruitful for you while you use it but for your children too.

Solid Assets

Tying up cash in real estate is one of the most secure ways to fix a cash investment as an asset. This might even increase your ability to generate profit in a much more accelerated way than simply letting money sit in a cash ISA will do. The choice is yours, but you can be sure that balanced and predicted well, a property can become a solid way to tie cash securely.


Once you purchase your holiday home, you’ll have somewhere special to retire to when your working life comes to a close. If purchased now while you’re working, your years of nuanced improvements to the property will culminate in the perfect getaway you have dreamed of your whole life to spend your final years in. There are much worse ways to enjoy a retirement for sure. Countries like Spain also have a relatively low cost of living, meaning that your nest egg of a retirement fund will stretch further and help you enjoy a higher standard of living thanks to your life savings.

It’s important to check out the purchasing power of your currency now. It might improve by the time you retire, meaning that you could even sell up and acquire a brand new property come your retirement.


You must keep an eye on the local markets and make sure that your investment is likely to stay worthwhile two years from today at least. This is because if you have any issues with the property, you won’t be able to sell up until you have that solid return on your investment to begin with. However, this also works in a more positive manner. Who’s to say that if you improve the property, over time it won’t be worth much more its value? This can lead you to purchasing future homes of better quality in the same area, or even giving you the opportunity to purchase more than one home.

You’ll never know if you don’t try!


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