When you own an investment property in a great area, it can be tempting to want to use the home yourself some of the time.
Having your own little getaway while also making money off of a property may seem like the ideal solution, but there are certain risks to consider. Let’s take a look at three.
1. Your idea of a perfect holiday could be different than others
While you might think your holiday home is perfect, others might have a different idea. That means your property could prove difficult to rent when you aren’t staying there.
2. For maximum rental yield, you won’t be able to use the home during peak times
Unless you have an extremely flexible work schedule or are retired, chances are you go away during school holidays and other peak seasons.
Unfortunately, so does everyone else. When you share your home with other holiday-goers, you’ll need to compromise on the times of use – or else miss out on peak rental rates.
3. Holiday spots tend to have more fluctuating populations
Again, this boils down to the idea of peak seasons. When you buy a home in an area with an extremely transient population, you could struggle to find tenants during the off-season.