Should I consider buying a holiday home in the UK?
It’s safe to say summer is unofficially over in the UK, the sparse days of sunshine aren’t going to cut it!
However, we Brits do not rely on the sunshine to let loose, we truly know how to have fun. If you’re anything like me and your idea of fun is solitude, then this post is for you.
Is London getting a little too crowded for you, or do you just need a moment after a terrible week at work, or do you simply want to explore another town in the UK? You should consider adding a holiday home to your portfolio. These are money makers in their own right.
You might be thinking ‘I can barely afford a property in London, why the heck would I want a holiday home?’ Well, your in luck. Generally, properties are much cheaper outside of London and the extra cash you generate from renting out your ‘home away from home’ can help you buy that property in London. Smart, right? To get a higher return on your investment, you might want to consider building yours from scratch or even restoring a derelict building —in my opinion, this is more rewarding, however involves a lot of work and research. Here are some tips if you choose to go this route.
For example, this Scottish mansion just went on the market for a guide price of £200,000. Although, it requires extensive work, this property has a lot of potential. Another would be this 2-bedroom bungalow in Devon for a guide price of £19,950. A simple rebuild would transform this property enormously.
You need to bear in mind that you cannot use a buy-to-let mortgage for a holiday home if you plan on renting it out when it’s not in use, there are specific holiday home mortgages available. This is because of the void periods, which are inevitable. Additionally, borrowers are usually banned from letting the property as a holiday home with buy-to-let mortgages.
So how do you spot that holiday home that is worth your while?
First of all, decide whether you want something that will be visited frequently or if it will simply be used as a holiday getaway. You also need to decide whether you want to go countryside or coastal. If this property is to be rented out when it is not in use, then make sure you target popular holiday destinations in the UK and start your search there. Consider areas like the Lake district, Dorset, Brighton, Cotswold, Cornwall, Devon, Somerset, Margate, Isle of wight and Scotland. You are not solely thinking about a ‘getaway’ but also a return of investment.
Secondly, you want to purchase something that is attractive to most people as you will be renting it out. If this is not your intention, make sure it suits your desires and your lifestyle. You want it to reflect your taste and personality. Typically, for either use, you may make minor changes to the property and furnish it yourself.
Thirdly, do your research! People say a lot of jargon when trying to sell a property, so do not believe everything you hear. Buying the wrong property could be a very costly mistake.
Lastly, buy something that is sellable. Even if you don’t intend on buying to sell, you never know where life takes you and may find yourself needing to sell this property. Consider all the things a typical buyer would want when buying a property, if there’s a lot missing from the list, then it simply isn’t for you, unless you are rebuilding.
Properties currently on the market
Not sure about this? You can always test the waters, there are plenty of rental holiday homes dotted around the UK, like this modern cave.
Give it a go before summer is officially over…