Owning another property in the form of a holiday home can offer retreat and convenience. However, before committing to this rewarding investment, it is best to delve into the benefits and drawbacks before making this significant purchase.
The following pros and cons will help in your decision to purchase a holiday home.
Pros
Enjoy regular staycations
Oak View Lodge Park (a company selling luxury lodges in the United Kingdom) explains that instead of travelling abroad for your vacation, you can explore different regions of your own country when buying another property. Additionally, owning your own holiday home can offer flexibility and spontaneity. “If you suddenly have a free weekend, you can easily pack your bags and head to your lodge without worrying about booking accommodations or finding available flights.”
Improved lifestyle
Owning another home can offer a range of lifestyle benefits that may enhance your overall well-being, notes Oak View Lodge Park, adding “The cosy ambience provides the perfect setting for quality time with family and friends, whether it’s going on hikes, day trips to the beach, playing board games, enjoying a meal together, or simply relaxing by the fireplace.”
Rental income
If you and your family are not using the holiday home for yourselves, why not get a few extra rands by renting out the property for a week or two and earn an extra income? According to the property portal 99 Acres, many vacation-goers prefer living in holiday homes as there is more freedom compared to the hotels that involve complying with a laundry list of rules.
Cons
Complaints
“If there are guests, there are bound to be complaints big and small, even if you have passionately worked to set up the accommodation,” says 99 Acres. “Poor ratings and feedback on online sites by customers may adversely affect the returns and lower your profit margins.”
Maintenance and upkeep
Although rewarding, making sure that your holiday home is worth five stars can be a lot of work. Oak View Lodge Park advises you to keep a budget in place to cover heating, lighting, and any unexpected repairs.
Additional and hidden costs
Oak View Lodge Park says, “If you plan to rent out your home, you will have additional expenses related to marketing the rental property, managing bookings, and cleaning after each guest leaves.”
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