Investing in Holiday Homes – What You Should Know
The demand for property rentals in UK holiday hotspots has surged as people are understandably reluctant to travel overseas with current uncertainty about possible renewed restrictions. Estate agents are reporting a high level of enquiries for holiday homes, either for owners’ own use at weekends and during the holidays, or as investments to take advantage of the rise in staycations.
Jennie Hancock of Property Acquisitions, a home search company in Chichester, has good advice for those feeling the lure of a holiday property in West Sussex.
When your perfect holiday home becomes a permanent home.
Many people are tempted to own a holiday home. You can head off anytime, with family and friends, or maybe just have a residential investment. Will your holiday home become your home for the future?
I have been helping buyers for years to find their perfect holiday home. How many times have I found a holiday home for a buyer where the owners fall in love with the property and the village and then decide to move in and settle permanently? The draw to the South Downs and Chichester is something that locals totally understand. This my local area, where I have lived since I was born.
Handy Tips for investing in holiday homes
I thought I would share some handy hints with you for your friends and family, should they be considering moving closer to you.
When buying another property away from their main home, the purchase may become an investment. Often when they sell in the future, the next buyer will be someone like them. Their initial plan may change in years to come, so remember this holiday home may turn into a permanent home.
It is also important to understand how the property and the holiday home market works in the village you are investigating, so consider local activities and interests that lure couples or families to the area.
Try and strike a happy medium between buying for enjoyment and buying for investment. Consider the size of garden if you are not there permanently. There is a tendency to prefer an easy-to-maintain garden, though many will choose to enlist someone local to keep an eye out and look after the property when it is left unattended. A good pub or a village shop is a huge bonus.
Different questions and requirements arise for people at different stages in their lives. Decisions are very individual. When buying a holiday home typically buyers look for properties in quiet, rural locations.
Stamp Duty Holiday boost
There is also excellent news from the Chancellor of the Exchequer in the July 2020 budget announcement: stamp duty when purchasing a second home has been changed. Prior to July, you would have paid £26,000 in Stamp Duty on a £450k ‘additional’ property – as a buy-to-let or second home. With the stamp duty holiday coming into immediate effect, now SDLT is reduced to £13,500 until March 2021, representing a substantial saving.
Happy hunting for your friends and family.
Advice on second homes in West Sussex
Jennie Hancock is a local property expert with 30 years’ experience – and is available for a chat if you would like to call her to discuss plans for investing in a second home in the best West Sussex holiday hotspots. Please call her on 01243 531133 or get in touch via the website here.