Investing in holiday homes is one of the safest options to invest and maximize your benefits. The real estate sector is one of the most demanded markets for investment, so small and medium investors continue to use their savings to buy real estate, as well as commercial premises or parking spaces. Moreover, in 2022 the data shows very favourable figures, which makes the real estate sector a safe haven.
However, a series of very important factors must be taken into account before investing in a holiday home, as with this type of transaction we are looking to make a profit and ensure a profitable purchase. Therefore, the following tips are highly recommended:
Condition of the property
The condition of the property you want to buy, obviously, must be in good condition, whether you plan to use it as your own home or to rent it out. The maintenance and cleaning of the property are also factors to be taken into account, as well as the services it offers, since profitability will depend on these factors.
Use to be made of the holiday home
The buyer must be clear about the following points before acquiring a property:
- Is the investment being made with the intention of making personal use of the property?
- Is the property to be used for rental purposes?
- Is the property to be acquired for mixed use, i.e. living in the house for part of the year and using it for holiday rentals during the remaining period of the year?
Checking our financial situation
Investing in a holiday home is a very significant transaction, so we must be clear about our purchasing power in order to be able to afford the investment. If a mortgage is taken out, this will be an expense that will have to be paid every month, as well as the maintenance costs.
Therefore, in order to be able to face all these expenses, we must be clear about the benefits that the property can bring, either in terms of renting it or in terms of its value increase if we are thinking of selling in the future. Based on this, we will also have to decide whether we want to buy a new or a second-hand property, and whether we are going to rent it out or only want it for personal use.
Choosing the area
The most demanded areas to invest in a holiday home are the beach and the mountains, as they are the most popular holiday destinations. Or you can go for city centre flats in areas that are in high demand.
Whatever the case may be, it is essential to choose an area that is close to basic services, as this will help to increase the value of the property over time. Before deciding to buy a holiday home, it is a good idea to visit the area to get to know it and to help you make the best decision.
Assessing maintenance costs
Being the owner of a holiday home involves the same maintenance costs as those of a regular home. The appropriate taxes, home insurance, utilities such as electricity, gas and water, or the community fees will have to be paid, so the best option to get an estimated idea of all these expenses is to seek professional advice.
Consulting a real estate agent for advice
The best option if you are not sure how to proceed is to hire the services of a real estate expert to advise you and help you find a property that suits your needs and your budget. Making this investment can be very profitable, but it is best to be advised by professionals in the sector to ensure that all the details are taken care of and that the purchase is a good investment for the future.
Where to buy an investment property?
It has been proven that investing in a holiday home is one of the best investments we can make, as tourism is one of the most important industries in our country.
As mentioned above, one of the first things you should take into account is choosing the right area. The beach and the mountains are the most touristic areas with the highest demand for holiday rentals, so whether the property is purchased for private use or for renting it out, its value will increase in the market.
Areas such as the Mediterranean coast and the two archipelagos, as well as cities such as Galicia, Cádiz, Huelva, Málaga or Barcelona, are a good option for investing in a holiday home, as these are destinations with a high tourist demand almost all year round, though the buyer’s preferences will also have to be taken into account if the property is intended for personal use.
So if you have decided to invest in a holiday home, at Sonneil you will find the property that best suits what you are looking for. 👇