Buying A Holiday Property

From the outset you will need to bear in mind that buying a second home solely for your own use is a different proposition to acquiring a property to let on a commercial basis.

You need to decide how much time you want to spend at the property and how much rental income it has to produce to meet your financial goals.

If maximizingthe income yield and cash flow is paramount you will be under greater pressure to ensure that your acquisition produces high occupancy and premium rents. This is where House Nouse can help.

What factors do I need to take into account in the buying decision ?

There is a surprisingly long check list of considerations;

• Budget - How much do we have to spend?
• Funding - How much will we have to borrow?
• Wherewithal to service a mortgage – Will the rents cover the mortgage?.
• Location  - Where should we buy?
• Setting – Should we buy in a village or remote setting?
• Accessibility to your home – How often do we plan to use the property?
• Your own usage – Do we want to let it full-time?
• Tourist demand and seasonality – Is the area popular all year round?
• Competition - Is the local area already saturated with holiday cottages?
• Age and architectural style of property – New v old?
• Size of accommodation – What is the optimum size for us and guests?
• Comfort and quality of fittings – What standards will guests expect?

Is now a good time to buy?

During the past 2 years a window of opportunity has opened for new entrants to the holiday lettings market. The adjustment in property prices since 2008 and continuing strong demand for breaks in the UK have boosted rental yields to levels well above the interest you would earn on your keeping your cash in savings. In addition mortgage rates are at an historic low and funding is available for those buyers with adequate cash deposits. Securing ownership of that dream property for the right price will also be made easier by the fact that there fewer buyers in the market.