Buying a holiday home is a great investment. The return on investment is always high, especially if you buy the house in a suitable location. There are certain factors you need to consider when making this investment. Here are five of these factors:

1. How Often You Will Actually Be Using the House

If you intend to stay in the house for short periods every year, you will be better off buying a holiday house in a good tourist destination. This is because you will need to capitalise on the rent whenever you are not in the house. It would also be better for you to invest in a larger house, even if you will not personally make use of the extra space. This will allow groups of people to rent the place.

2. What Is the Availability of Transport Links?

It is important to consider how much your holiday home is connected to the rest of the area. Ideally, it should not be more than an hour away from the airport. If public transport is unavailable in the place, there should at least be a reliable car rental service. Good transport links will increase the demand for your holiday rental.

3. Are Timeshares or Joint-Ownerships a Better Option For You?

Timeshares and joint-ownerships can significantly reduce your costs on the house. You should compare your mortgage choices to see whether you can comfortably purchase a house on your own. Besides the actual mortgage, you will save money on the maintenance and insurance of the holiday home.

4. Are You Aware of the Local Market if Buying to Let?

If you are buying to let, you need to know the occupancy rate in peak seasons, the average returns, and the competition in the area. You should also know and understand your clientele so that you can figure out what type of house to buy. Generally, learning about the local market will help you position yourself properly.

5. Are You Savvy with Local Property Laws?

Property laws vary from place to place. In some places, you are not even allowed to invest in a second home because the extra demand will make homes unaffordable to locals. Also, you need to check the requirements for purchase of a holiday home. You may be forced to live in the area for a certain period before you are allowed to buy a house. Make sure you familiarise yourself with these laws before buying the house.


Buying a holiday home is not a straightforward process. When purchasing the home, you will have to study the local housing market, the property laws, the transport links in the area, and the length of time you intend to spend in the house. You should also consider whether you want to buy the house on your own, or jointly with other partners.