A holiday home which can also be let
Probably the largest category of enquiries is from the potential purchaser who has some cash to spare and fancies acquiring a holiday property in the sun, which he can also let out when not using it himself.
Fortunately the figures work out very well. You can expect to cover the financing costs on such a property during six months of the year, leaving you free to enjoy the property yourself during the remaining six months. You probably won’t use it yourself for quite as long as that, leaving you with a healthy overall profit to be made.
Some people will use their property quite heavily in the summer – high season – period; others will choose to let it out at premium rates during this period, keeping their own visits to the cooler, although still delightful, autumn, winter and spring months. We use our own property all year round, and it is quite common to spend the day in shorts and t-shirt, picking up a nice tan, even in January (although the nights can be somewhat chilly).
Either way, the choice is yours. We can advise you as to the best locations to choose for year-round letting (there are many areas which simply don’t let outside the main holiday season, making it difficult to make the sums work out). And if you find a nice property we will also be very pleased to discuss the possibility of managing and letting it on your behalf!
If you are after an immediate return on investment, and an immediate holiday capability for yourself, then you will need to look for a Resale property (see above). However an alternative and very attractive route might be to put yourself down for a property on a new development that is just starting construction. In this way you can pick up your property at a considerable discount, since the builder is keen to see his project get off to a flying start, provided that you don’t mind waiting 18-24 months for completion.
The downside to this route is that you won’t be totally sure as to how the whole development will turn out. The upside is that you could, if you chose, sell the property on, just prior to completion, at a quite staggering profit, using this profit to fund a much bigger (possibly resale) property elsewhere than you might otherwise not have been able to afford. This strategy is discussed in more detail in the following section.