There are all kinds of holiday homes available, from luxury builds to campsite options, you will always find something that you love. If you are on the hunt for your dream holiday home, we can help – but are holiday homes worth it? 

Here, we will go through what you need to consider when determining if getting a holiday home is worth it for you. Every circumstance is different, so make sure you evaluate your life and limitations before making a financial decision like getting a holiday home. 

Are Holiday Homes Worth It?

Are holiday homes worth it? There is only one way to find out – look at the data and explore the advantages and disadvantages. If you want to find out if you should consider getting a holiday home, keep reading. 

The Advantages of Holiday Homes

There are great advantages of owning a holiday home that might draw you into the prospect of investing in one. Below, we will go through the 

Great Income Potential

Compared to many other investments, property investment is lower risk in today’s world. When investing in short-term holiday lets, you are setting yourself up for the potential of bringing in a lot of income, and therefore covering all your costs and more. 

In 2022, it was recorded that the annual UK turnover for holiday lets was £24,000. So, if you choose the right property, you can bring in a healthy income. 

Tax Advantages

Since furnished holiday homes are considered a business, this means that you could be eligible for tax benefits. These may not be available to buy-and-let landlords, and may include business rates relief, mortgage interest tax relief, and more. 

They Are Becoming Increasingly Popular

Over the years, self-catering holidays have grown increasingly popular. This means that there are likely always going to be people who want to stay in your holiday home and self-cater. Not only that, but the concept of “workcations” is becoming more popular, too, so there is a chance that you will not need to worry about renters depending on where your holiday home is. 

You Can Hire Someone to do the Work

If you choose to purchase a holiday home and rent it out to others, you can hire someone else to do all the hard work for you. There are plenty of agencies that are available to help, and they can make your life much easier, provided you are willing to part with a portion of your profits. 

The Disadvantages of Holiday Homes

Like everything, there are also disadvantages of getting a holiday home that you need to consider when looking into this area. Below are the notable disadvantages that you should bear in mind. 

Income is Inconsistent 

If you want to rent out a holiday home, you need to know that income can be inconsistent. For example, during the COVID-19 pandemic, no one was allowed to stay in holiday homes, and therefore income came to a halt for owners. 

While it’s unlikely that we will experience another pandemic like it, there may be other circumstances that mean that your income will be consistent beyond peak holiday times. 

You Are Responsible for it

This might be obvious, but you need to remember that you are responsible for your holiday home. If you do not have the time, energy, or finances to take on this responsibility, then you should not get one. Ultimately, you will be under more stress if you intend to rent your holiday home out to others, and it needs to be treated like a business. 

Staying There May Not Feel Like a Holiday

When you purchase a holiday home with the purpose of renting it out to others, staying there might not be as relaxing as you hope. Rather, a lot of your time may be spent getting the place ready for the short-term tenants, carrying out renovations, or checking the area. 

You will not feel like you are on holiday, and your holiday home will turn into a business that needs to be managed and taken care of. 

Peak Holiday Seasons May be Difficult 

If you rent out your holiday home, then you probably will not be able to actually enjoy it in the peak holiday times, or most times of the year. While you could spend time there, it would be at the risk of losing income, and this is something you need to decide on for yourself. 

If you purchased your holiday home to be a business, then know that the time you can enjoy your purchase will be incredibly limited. 

Added Council Tax

In the case where you do not qualify for business rates, you will need to pay council tax on your holiday home. Depending on the council, the tax will vary, and some councils will charge a premium if you own a second home. 

This may depend on the type of holiday home you get, though, and where you get it. 

More Red Tape and Local Restrictions

Depending on the type of holiday home you want, there may be additional red rape and local restrictions in place. Find out about tax changes and licensing schemes that you should be aware of. 

You Don’t Know Who is Staying in it

Unless you are carrying out background checks on who will be staying in your holiday home, you can experience the same issues that Airbnb owners do. Visitors might be unruly, messy, or damage property, and you will be the one left to clean it all up. 

If you choose to rent out your holiday home, make sure you have clauses in the contract to protect yourself from damages. 

Managing is a Lot of Work

Not only is managing your holiday home extra work, but if you want to market it, too, then you are going to have to pay. Marketing isn’t free, and it is not easy, either. 

In order to successfully market your holiday home for others to use throughout the year, you need to be willing to put the time into it or pay for someone else to handle the management for you. In either case, it isn’t an easy decision, and it is something that you need to take into consideration when evaluating your personal life. 

UK Staycations Are Becoming Increasingly Popular

It is worth noting that since COVID-19, staycations have become incredibly popular all around the world, including the UK. This means that people are choosing to enjoy their holidays more locally, with holiday homes, caravan parks, and camping vans becoming more and more popular, even some time after the height of the pandemic. 

Because of this, getting a holiday home and either using it for yourself or turning it into a profitable business investment could be a great idea. Depending on what you choose to do with your holiday home, you can earn a lot of income from it and become a great alternative to Airbnb

Should You Purchase a Holiday Home?

There are all kinds of holiday homes available on the market today, and they are all charming and unique. While it can be difficult to decide if you should get a holiday home, you need to make an informed decision and be confident in it. 

At Northam Farm Caravan Sales, we offer holiday homes as well as old and new caravans, so you can take your holidays wherever you wish. We love the idea of local holidays and good financial investments, and we believe that holiday homes are a great solution to both. 

Choosing where to buy a holiday home can be difficult, but we can help you pick the right one for you, including our very own homes that could be yours:

So, if you have been thinking about getting a holiday home but have asked yourself, “are holiday homes worth it?”, then hopefully we have helped you decide. It is up to you to decide, because we all live different lives, and you need to determine if getting a holiday home works for you and your life.