Industry insights
Buying a holiday home in 2023
3 Jan 2023
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By Sophie Eminson
As the world recovers from the pandemic of 2020, many people are looking for ways to diversify their investments and prepare for the future. One option might be to invest in a holiday rental, which has become increasingly attractive due to its potential returns and low-risk nature. Despite house prices and the cost of living increasing, here is why buying a holiday home in 2023 is still a good investment.
Buying a holiday home
Buying a holiday home can be a complicated process, but it is also one of the most rewarding investments you can make. The first step is to figure out your budget by looking at your income and expenses, as well as any loans or other funding sources you may have available. Once you know how much you can spend, you should research different properties in your desired location and start narrowing down your options. Different locations have different regulations for holiday homes, so be sure to do your research in advance. Take a look at this extensive guide to buying a holiday home by Ideal Home.
Demand for 2023 travel
Demand for vacation rentals and travel is higher than ever, and 2023 is set to be an exciting year for travel with so many events and experiences on offer, such as the FIFA Women’s World Cup, Charles III coronation, Eurovision and Glastonbury. According to our partner channel Expedia, 79% of people are still planning a leisure trip in the next year; and almost half said that travel is now more important to them than it was pre-pandemic. Take a look at our 2023 travel trends predictions for more information and all of the inspiration you need!
Return of investment
One of the major benefits of buying a holiday home is that you can rent it out on sites like Airbnb or VRBO to generate income when you’re not using it yourself. Airbnb operates in most countries around the world, with the typical host earning $13.8K each year in the US. This gives you an extra source of passive income without having to put additional work in. If you choose carefully and invest in a property located near popular tourist attractions, then your rental income could be even higher than expected due to increased demand during peak seasons. A holiday home in a popular location will be more likely to increase in value over time too. This will help ensure that your investment pays off sooner rather than later and that your profits are maximised while holding onto the property itself. You can also use it as a vacation spot for yourself or your family!
It's easy to get started
As well as being an easy earner, it’s so easy to get started on Airbnb and other booking channels. If you are looking to buy a holiday home, it is important to do some research into determining the best location for your investment first. Good locations will be ones that offer plenty of activities and amenities for tourists, ensuring that houses in these areas will remain desirable. Additionally, it is important to understand the associated costs and processes that come with purchasing a holiday home in a particular area, as well as any legal requirements or regulations that must be met. Once you’re ready to go, check out our beginners guides for marketing a holiday home or reach out to our team who can offer expert advice on vacation rental marketing and get you listed on over 30 different booking sites.
