IT IS a new year, and many people are already looking hopefully towards the summer and organising their vacations.
National estate agent Strutt & Parker believes now is a good time to invest in the holiday home market. The financial benefits of investing in this specialist sector are increasing at a fast rate as people realise the long term rewards that are possible.
The additional plus is that you can enjoy your family holiday time there as well.
What to buy?
There is currently strong demand for holiday homes to let in the UK particularly in popular towns, by coastal shores and attractive quintessentially English villages.
It needs to be a place that pulls in tourists all year round, not just in the summer months, and can provide good amenities and activities.
The marketplace is set to surge over the next few years as more people are choosing to shun expensive foreign holidays for more local and affordable breaks.
This trend for ‘staycations’ is boosted by the lacklustre performance of the pound and excellent investment returns on second homes.
Recent reports have shown that enquiries for holiday lets have more than doubled since 2008.
By investing now the home can be made ready to let by the peak summer months if not before.
Property still remains a solid investment with handsome rewards.
The rent obtained can make a good supplement income or even provide a pension.
Compared to stocks and shares, a good holiday let home should remain bulletproof through the often unstable financial times.
Providing the location is good and the price paid is right then the long term gain is hugely appealing.
With lower bank bonuses this year, there is also less competition for these types of classic holiday homes so there are some very good deals to be done.
It has been proven that there is even good demand for larger houses as families are holidaying and bringing different generations all together so bigger houses are also popular lets.
As well as being a great investment, holiday homes also give a huge ‘lifestyle benefit’ to the owners.
They provide a wonderful second home that can be used throughout the year when not let out.
As holiday homes are mainly viewed as long term investments this dual benefit really adds an extra appeal.
People really seem drawn to the personal aspect of being involved in letting out a place and creating a business out of a home that they can benefit personally from too.
As the pound continues to fluctuate, the option of buying abroad seems less attractive and second homes in the UK are seen as both a financial and enjoyable lifestyle investment.