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The Pros and Cons of Buying a Holiday Home

Holiday homes are a dream for many people. Whether it’s a villa near the golden beaches of Florida, or a mountain lodge close to the ski slopes of Colorado, having a vacation home to escape the hectic nature of daily life a few times a year is something that few people would turn down if the opportunity arose.

With prices of holiday homes currently between 30% and 50% down on this time five years ago, there has never been a better time to invest in that dream vacation property. However, like any other large financial purchase, buying a holiday home is a decision that should not be rushed into. There are both pros and cons to owning such a home and these will need to be considered thoroughly before diving into the property market.

The pros of buying a holiday home

There are numerous advantages to owning a home that make purchasing one an attractive investment:

Rental income

One of biggest advantages of owning a second property is the income that can be made from vacation rentals. If you decide to rent your home as well as using it yourself, there is the possibility of making a profit on top of mortgage payments. Popular resorts in peak season can usually charge rental fees higher than mortgage repayments.

Tax deductions

If you decide to advertise your second property for vacation rentals and only stay there yourself for less than two weeks of the year, it may be possible to deduct operating expenses, interest on the mortgage, and property taxes from the gross income.

Long-term value

The location of homes makes them prime real estate and they more likely to hold or increase in value over a long period of time; this means that should you ever decide to sell, you can demand a profitable figure.


Many people like the familiarity of vacationing in a particular place every year – holiday homes allow you to do exactly this.

Cons of buying a holiday home

While the advantages make a strong case for holiday homes, this type of property is not without its drawbacks:

Initial outlay

Holiday homes are located in exclusive areas and have a high market value as a result. Not only is there the initial outlay on a mortgage deposit, there is money that has to be spent on furnishing the property, and costs can run high as a result.


As a homeowner or property owner providing vacation rentals, you are responsible for maintaining the second home. This means that you will foot the bill for any major plumbing or heating problems and general home improvements.

Lack of time

Holiday homes may be located hundreds of miles away from where you live and your time spent there could be limited as a result. In addition, when purchasing a second property you need to be sure that it will hold the same appeal 10 years down the line.

Weighing up the pros and cons of homes will ensure that you are in a place to make the right decision on whether to purchase a second property or not.

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