Making sure that you have enough money to live well in your twilight years is extremely important, but it's not easy to know how and where you should be investing. But what if your investments for your future could actually enhance your quality of life today and not just in the future? A holiday home is one such property investment – something that will grow in value over time (with luck), that you can rent out to other holiday-makers, and that you can use for your own holiday adventures.
But investing in a holiday home is easier said than done. What should you be aware of before you sign on the dotted line so that your investment gives you the best possible return?
Rent before you buy. Although you might want to make a purchase straight away, it's a very good idea to rent for a while in your chosen area and experience it across all four seasons. This is important because you want your holiday home to make money for you throughout the year, and you can only know if this is possible by actually experiencing it during all the seasons. For example, if the main draw of your property is that it's beach facing but you are unaware that seaweed litters the shore for four months of the year, this could be an issue.
Understand the maintenance costs. Just because you don't spend as much time at a holiday home doesn't mean that it's maintenance free. In fact, it could actually require more maintenance than your regular home. For example, oceanfront properties can get attacked by waves, which could lead to things like damage to the paint job of your home, damage to the structural integrity of your home, or even flooding in extreme situations. Be sure to factor in the cost of property management before you invest.
Up and coming areas. If you are lucky enough to be able to buy property in prime tourist hotspots, you will almost be guaranteed a certain amount of rental trade as long as your home is kept well – although you should be wary of paying over the odds for any property because you might experience less growth in the value of your property. Instead, it could be worth punting on a property that you believe is in an up-and-coming area for tourism. This way, your initial investment will be lower and there will be greater scope for your investment to grow over time.