Apartment or house – which is a better holiday home investment?
December 11, 2013
Why buy a house?
Or bungalow or a beach hut or a country pile…
– Typically a freehold purchase rather than leasehold, so you own the land under the property, and are also not subject to an annual ground rent cost.
– A broader appeal to guests – the idea of having nobody in an apartment above or below you during your holiday means less noise.
– Outdoor space, typically a garden is desirable for guests for barbecues, long summer evenings and pet-friendly stays.
– More internal space – though of course this varies from property to property.
– Less issues with neighbours – covenants can often prohibit holiday letting in some apartments, while permanent residents in an apartment block may not like holiday guests coming and going.
Why buy an apartment?
– Low maintenance – no gardens, external painting, windows to be organised, which can be a big benefit when you live a distance away from the property.
– A better outlook? New-build apartments tend to have some great views, with floor to ceiling windows and sea views. In turn this leads to the potential for attractive photography which in turn leads to more bookings.
– Light and bright open plan interiors – which are great for families spending time together, and also more photogenic.
– Allocated off-road parking – another important tick box for holidaymakers.
– Security – with locked communal areas and less entry points to the apartment (not on the ground floor), burglary is less likely during empty periods.
So there’s no exact answer to the question, both have their pros and cons for the second home investor. And our experience is both work for holiday lets, and second home ownership. It’s simply a case of weighing up the pros and cons of each option.