Benefits of Buying a Holiday Home
The benefits of buying a holiday home are many. The recent surge in holiday home ownership shows that for a lot of people, it is the right choice.
The ability to up and go at the drop of a hat, with no booking, minimal luggage and no accommodation fees, to a place that you know and love, might alone be enough to persuade you to take the step of buying a holiday home. Add to this the possibility of letting your holiday home to others when you are not using it, with the extra income that can bring and for you the deal may be sealed.
If you are thinking of buying a holiday home, this article could help you to make the best decisions for you, depending on your specific circumstances.
- Easy choices
A holiday home takes all the searching and thinking out of holiday planning. No more pouring over brochures and online travel sites. You have found a spot you love and know that you can head there any time you like. All you need to do is throw a few things in a bag and get there.
It is worth considering the time it will take to travel to your holiday home. If it’s easy to reach then you’re likely to make the most of your investment. It may also help to remember that some maintenance or repair issues may arise that demand your personal attention, so you might not want to take too long to get there.
- Less luggage
The fact that your holiday home is yours, means you can leave bulkier items there, so there is no need to take them with you every time you visit. For you this might be something as large as a jet-ski or simply a pair of walking boots or some buckets and spades.
You may be someone who does not crave adventure every year but instead values the ‘home from home’ experience. It is often said that going on holiday is paradoxically one of the most stressful things you can do. If your destination is somewhere familiar, already stocked with creature comforts and with no surprises, you can be more sure of a relaxing time ahead.
- Enjoy the local community
If you are a regular visitor to your holiday home, there is an opportunity to get to know the people who live permanently in the area. Making friends with the local pub landlord or restaurant owners can go a long way to making your stay more pleasant each time you visit.
All homes require maintenance and security and this can mean employment opportunities for the permanent local residents. In some areas, holiday home ownership is controversial, with worries about shrinking housing opportunities for local people, as prices are driven up by outsiders. Involving local people in the upkeep of your home can help set you apart from the rest. This can be particularly true if you are letting your holiday home and running it as a business when you’re not there. If you are, you may want to consider offering accommodation to local people at a discounted rate in off-peak months.
If you choose to buy a lodge on a park licensed for holiday homes, you may very well meet the same people whenever you visit and be able to participate in the community and events many holiday parks host.
- Extra income
Given that you cannot stay in a holiday home all year round, it may make sense for you to let yours out to other holiday makers. This option needs to be considered carefully, depending on your circumstances. A well maintained, marketed and run holiday home that has a good rate of occupation can provide a good supplementary income and may eventually pay for itself.
However, you may want to think through what you are prepared to do to make this happen. There are letting agencies who will take everything off your hands but will take a significant cut of your rental income (usually around 25%). Otherwise, you should be prepared for about ten hours a week work and more frequent visits to carry out maintenance, repairs, changeovers between guests and trouble-shooting.
You will also need to think carefully about your holiday home insurance options if you are letting out to guests. At Park Home Assist we offer cover that includes, as standard, public liability cover up to £5million and optional cover for accidental damage to buildings and contents caused by guests (or yourself) among other important features.
Finally, when the time comes for you to step away from work, you may see your holiday home as the ideal place to retire. It is worth considering what may change if you take this path. If you have been taking advantage of tax-breaks available to holiday-let businesses, you may need to factor the loss of those into your calculations. Conversely, some areas such as Bristol and Wales are trying to discourage second home ownership by increasing their council tax charges by as much as 300% for holiday homes. Therefore, you may find this decreases if you turn your holiday home into a primary residence for your retirement.
If you’re considering buying a holiday home, we hope that this article has given you food for thought. Good luck in your holiday home adventure!
This is a marketing article from Park Home Assist, multi-award-winning providers of residential park home insurance. If you would like to speak to an advisor regarding insurance for your park home, please contact our friendly team in our Northampton office on 01604 946 796.
Please note that all insurance cover is subject to acceptance of terms and conditions.
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Published – 15/09/23