When contemplating the purchase of a holiday home in the UK, there are several crucial factors that warrant careful consideration before making a deposit. These encompass aspects such as location, proximity to amenities, accessibility to transportation, local attractions, potential rental income, property management options, and potential for capital appreciation. Taking the time to thoroughly evaluate these factors will ensure a well-informed decision and a delightful holiday home experience.
Budget Your Holiday
Be realistic about what you can afford, whether that be as a lump sum or monthly installments, and consider what would happen if your current financial situation changed unexpectedly through a job loss or illness. On top of the purchase price, you’ll also need to factor in the cost of insurance and site fees. Figure out what you can afford to pay, find a holiday home to suit your budget and stick to it.
What are Site Fees?
Holiday homes, just like regular properties, require certain essential services to ensure security, functionality, and maintenance. These include reliable security measures, efficient sewage and water drainage systems, timely refuse collection, as well as regular road maintenance. To cover the cost of these services, holiday home owners are typically responsible for paying site fees, which can add a few thousand pounds to their annual expenses. While these fees may seem like an additional cost, they are standard and invaluable in safeguarding and preserving the value of your property in the long run.
What’s included in the purchase price? Will you need to furnish your holiday home with white goods, curtains, and carpets? Does it have a parking space? Will you get access to the facilities in the holiday park where it’s situated? Being able to enjoy your holiday home means investigating these points, and finding out about any additional costs or limitations so that you can make a well-informed decision before committing to buy.
Can You Sub-Let?
Renting your holiday home out to other holidaymakers has two main benefits for you. Firstly, their rent payments will offset the costs of owning a holiday home, and secondly, having the place occupied while you are not using it secures it from break-ins and damage caused by dampness. However, not all storage sites or holiday parks allow sub-letting so investigate your options when choosing a location.
How able are you to maintain a holiday home? It may seem obvious that they’re not as robust as a traditional property, but being able to carry out tasks like clearing the guttering, and preserving the locks for security and any seals for protection against dampness and leaks requires some level of skill and mobility. When you buy a holiday home, ask the seller about maintenance packages on offer that take responsibility for these tasks for you.
When can you use your holiday home and how easy is it to reach? If your intention is to own a property that you can go to anytime you like, be realistic about how far, and how long you’re willing to spend traveling to reach it and check whether there are any limitations on the times of year you can access it. A holiday home is just that, and should never be confused with a permanent residence.
Try Before You Buy
Spend time in a holiday park before you commit to buying a holiday home on one. Check out not only the property but the park facilities and the attractions of the town it’s situated in. Think about returning to the same place frequently and ask yourself whether it has everything you would like in a holiday destination.