Opportunities

There are many reasons why people look to invest in the property market. Whatever your own personal reasons for purchasing this book, it is probably true to say that you are exploring the possibility of buying and letting a holiday home with a view to making money your venture.

In today’s society when pensions are performing badly, people are working very long hours and everyday life is becoming a bind, it seems to me that many people are looking for an exciting opportunity that will give them pleasure and satisfaction in addition to earning an extra income.

The national state pension in Britain is unable to keep pace with inflation and, with the cost of living increasing, company pensions performing badly and poor job satisfaction, people are beginning to look elsewhere for an escape. The opportunity of investing in something that not only will give years of enjoyment, but also produce an additional income, is becoming more and more appealing.

Not so very long ago, the thought of owning a second home was virtually unheard of for a person of average means. Property developing had not gained the interest of the average household and house prices were extremely buoyant. Now, with property programmes dominating our television screens, a wide audience has been targeted and it seems we all have an opinion on the state of the property market!

Although it is possible to make good money from letting out a holiday home, I do not feel that this should be your only reason for investing. If the sole intention is to make money on a regular basis, then perhaps you should be thinking of purchasing a property with a view to renting it out on a long-term basis rather than as a holiday let. In my opinion, purchasing a holiday home should be as much for your own use as for the income it is likely to generate.

Will Buying To Let Work For Me?

A holiday home, if marketed correctly, should provide steady capital growth over time and, hopefully, the income generated from holiday lets should help the property to pay for itself. Certainly this should be your aim when looking to invest in the holiday let business.

Property is still a good investment. Despite the recent scares of plummeting house prices, it is always worth remembering that property prices rose by approximately 75 per cent in the 1990s despite a recession in the early years.

Before entering into the holiday let business it is wise to explore your other options, to ensure that you are making the right personal decision. Will you be able to make reasonable money from:

If you have been disappointed with the above, then perhaps it is time to turn your attention to buying property with a view to renting it out as a holiday let.

So, will buying to let work for you? The answer to this question depends entirely on what you are expecting from your property and how much homework you are prepared to do in sourcing the right house and then preparing it for letting.

The Right Location

You will need to look for the right location. This must be an area that will appeal not just to you, but also to the average person looking to book a holiday. An important factor when deciding where to purchase your property will, of course, be the amount of funds available. Although this may seem obvious, it is all too easy for people to jump into buying property while being totally unprepared, and this can lead to disaster.

In the main, do not let your heart rule your head. It is easy to fall in love with a property, and make it your permanent residence. However, when buying a property to let, you must weigh up the pros and cons and look at the property as a business venture. The property must not be simply pretty and appealing to the eye – it must have the necessary potential to rent out and make your venture work!

It will undoubtedly be easier for you to sell an area to holidaymakers if you yourself are passionate about it and know it well, but ask yourself why this particular area is so special to you. Is it simply because you have been visiting, out of habit, for the past twenty years or so and have never thought of going elsewhere or is it because of the area’s outstanding natural beauty and fantastic beaches?

Ask yourself a few important questions before deciding on what kind of property to purchase and in which location:

The answers to these questions will make a difference to the type of property you buy and how you go about marketing it. If you are buying your property for the sole purpose of using it yourself and perhaps renting it to family and friends, then you will need to be equipped with much less information than if you are intending to rent the property out for much of the year to people you have never met.