Investing in a holiday home is in demand. Buying a second home appeals to many people for different reasons. Some want to go on holiday there themselves, others think of a nice rental return or have plans to sell the house later at a profit. There are pros and cons to buying a holiday home as an investment. We list them!

Advantages of buying a holiday home

• It is better to invest your money in a holiday home than to leave it in your savings account, where it hardly yields anything.
• Renting out your holiday home can yield a nice rental return.
• Over time, your investment can become worth more, possibly making a profit when you sell the holiday home.
• You can go on holiday whenever you want. Then you can get away from it all! Moreover, it is your own holiday home so you can invite friends over, for example.
• A holiday home close to home can easily be used for a short holiday or weekend. Nice with children or grandchildren.

Disadvantages of buying a holiday home

• A second home involves costs: fixed costs, maintenance costs, insurance. If the property is in a leisure park, there are additional costs (e.g. park maintenance, swimming pool…).
• The market for holiday homes runs parallel to the housing market. So if house prices fall, the same happens to holiday homes.
• Location is crucial especially for rentals. A holiday home in an inferior location will yield less in rentals
• Feeling obliged to always go to the same place on holiday.

A holiday home as an excellent investment

In short, a holiday home is a great investment. Think carefully about what you want to do with your second residence. Is it mainly about making a profit or do you want to go on holiday there yourself a lot? Inform yourself well in advance with experts so that you can make a sensible decision.