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Thinking of buying a holiday rental – things to consider

 

Buying a holiday let can be a great investment. Get it right and you could earn a monthly income from the property while seeing its value increase over time. To help ensure you put your money in the right place, we’ve put together a list of the most important things to consider when purchasing a holiday let. 

 

Choose the right mortgage

 

When buying a holiday rental, it’s essential you choose the correct mortgage. Select the wrong mortgage and you may find you’re unable to rent out your property. If you’re not sure what type of mortgage you need, talk to an independent advisor for more information.

 

Tax

 

In order for your holiday let to benefit from tax relief, it needs to be available for 210 days a year and let for at least 105 days per annum. If you’re buying the property purely as a holiday let, this shouldn’t be an issue. However if you’re planning on using the property yourself you’ll need to bear these restrictions in mind.

 

Location

 

Location is incredibly important when it comes to running a successful holiday let. Ideally, you want your property to be within easy reach of local amenities, close to nearby attractions and located in a picturesque area. As The Broads offer a fantastic choice of activities, beautiful scenery and year-round attractions, the region is the perfect location for a successful holiday rental.

 

Use an estate agent with excellent knowledge of the local letting market

 

If you don’t have an in depth knowledge of the local area, it’s essential you use an estate agent that does. A company like Waterside Estate Agents will be able to advise you on the best locations and the amenities available in the local area, helping you to find the property that’s perfect for your needs.

 

Consider your market

 

When investing in a holiday home, it’s important you think about the market you want to appeal to. Couples, families, groups, anglers and walkers all have very different needs so make sure you think about who’ll be staying in your property before you buy.

 

Airbnb or letting agent?

 

If you’re retired or work part time, you may well consider managing the holiday let yourself via Airbnb or a similar online service. Though this is a good way to maximize your rental income, it takes a considerable about of time and energy so you need to be confident you can dedicate the time required.

 

An agent on the other hand will handle all the bookings, money and communications for you. This takes all of the hassle out of running a holiday let and makes the whole process smooth and easy.

 

Do your Sums

 

In order for your holiday let to be a success it needs to cover its costs and bring in a little extra on top. To ensure your investment property is financially viable, do your sums before you make the purchase. Make sure you take insurance, utility bills, council tax and agents fees into account when calculating your finances.

 

To learn more about running a successful holiday let, or for advice on renting properties in the local area, contact a member of our team today.