In the wake of 2020 and 2021, more people than ever are looking to holiday in the UK in the coming year. However, with so many people looking to find the perfect cottages and holiday homes to rent out, now would be the ideal time to invest in your future by buying your own holiday getaway. Buying a holiday home is an excellent way to invest in your future and have a sizeable passive income coming in to splash on special occasions or to help you during financially troubling times. In this guide, we’ll cover what you need to know about buying a holiday home and why it is a fantastic investment for you and your family.
Getting A Mortgage
When you begin looking at getting a holiday home for you and your family to enjoy and to provide a sound investment for your future, the first thing you should think about is getting a holiday let mortgage. If you have no idea where to start with this, you could seek out the advice of someone like Simon Conn, Overseas Property Professional & Finance Specialist, Overseas Mortgages to help you understand a little more about the process of buying property abroad. Consider how much you can afford to pay upfront, and this should help you understand what your monthly repayments will be, which will allow you to create a reasonable budget. When you have an idea of how much you can afford, you can find more information at House and Holiday Home Mortgages, where they can provide expert advice on the options available to you to fund your investment. Your conveyancing solicitor will then receive a copy of your mortgage offer and go through all the conditions with you. They will take you through the legal process of buying your holiday home and perform the necessary legal searches on your chosen property.
Finding The Right Location
Once you have a budget, it’s time to choose where you would like to have your holiday home. Consider what type of holidays you will want and what you want to provide to the people letting out your home when you’re not using it. It’s also important to choose a popular location, as this will guarantee a better return on your investment as your property will be in higher demand.
Choosing A Property
When you’re set on a location, you need to think about what type of property you want as well as the features you want inside. Research your options, as there are plenty of different types of holiday homes in the UK, such as bungalows, townhouses, cottages, or even apartments.
When it comes to the features, you should make a list of what the property needs to have and what you would like; this will help you narrow down your options while keeping an eye for the diamond in the rough that ticks the majority of your boxes.
Managing The Property
If you’ve found the perfect property and you’re ready to make an offer, you should also consider how you are going to manage your investment. Many people use letting management companies for their holiday homes as this helps them to keep a high standard of services for the holiday goers renting the property as well as in line with any legal requirements.
The legal requirements for buying a property overseas can vary from country to country. For example, in Brazil, a CPF is required to purchase real estate. A CPF number is the Tax ID issued when you register with the Brazilian Revenue. It stands for “Cadastro de Pessoas Físicas” (Natural Persons Register). If you’re buying property in Brazil, read this blog post to learn more about CPF and how you can apply for it, before you proceed.
Hiring a company to do the work for you may eat into your profits, which is why other people prefer to do the work themselves. If you’re not sure which option to go with, consider how much work you can reasonably take on and if hiring a service would be better for you and your family.
Great overview for anyone considering a second property, but if you are going to rent it out also consult an accountant for the tax implications