There are a number of reasons why you shouldn’t look at purchasing a holiday home; inconsistent rental income and poor capital growth to name a few. But there are a number of lesser known issues with holiday homes which can put a serious halt on your financial growth!
We’ve discussed previously why purchasing a holiday home is probably a bad idea. The costs involved are high and the chance that you’ll actually make consistent income from rent is unlikely. Realistically speaking, a holiday home should be reserved for those individuals with a lot of spare income, existing savings and a number of assets which can be drawn upon to secure collateral with banks for lending. To break the process apart a bit more, we’ve had a chat with Ashlee Bird from the Finance Team who will take you through the key problems that holiday homes present!