How to turn a holiday property into a good investment
Yield on holiday property
A holiday property can often generate a higher return than a permanently rented property. This is another reason why holiday homes and holiday flats are very popular investments. The good potential returns from holiday homes are primarily based on the potential for value appreciation, the rental income and the tax benefits.
Purchase criteria for higher returns with holiday properties
The better the location of your holiday apartment/holiday home, the higher the increase in value can be after a few years. For example, if you had bought a holiday property on the Baltic Sea coast a few decades ago, you could enjoy an increase in value of up to 100% in some holiday resorts today.
Further profit plus points when buying
- Facilities: from sun terrace to sauna - what highlights does the holiday property already have?
- Rentability: from season length to shopping opportunities - in which region is there a long rental season and what leisure activities are available locally?
- Accessibility: from traffic jams to snow drifts - how quickly and easily can your holiday property be reached? But there are many other purchase criteria that can have a positive effect on the yield.
Taxes and income
Holiday properties are also so popular as an investment because they offer attractive tax advantages. If you rent out your holiday apartment/holiday home, you can deduct numerous operating costs etc. and thus reduce your overall taxes.
Calculate yield
Acquisition costs, annual net rent, management costs - many factors affect the potential return on a holiday property. With our yield calculator, you can easily and conveniently calculate the potential yield of your holiday property in advance.