More and more people are realising that investing in property, especially in the "buy to holiday let" market, can bring in a lot of money each year. Obviously, this depends on whether you chose the right location for your buy-to-let property and got the best deal on your mortgage for the property.
You can also save money on properties you buy to rent out for vacations by taking advantage of tax breaks. Since you will be making money from the property, the tax man will see it as a business. Other types of property letting, on the other hand, are seen as investment income.
To take advantage of these, you will have to show that your buy-to-let property is available to the public for at least 140 days out of the year and that you were able to rent it out for at least 70 days. You can't rent the property to the same person for more than 31 days in a seven-month period, and you can't get tax breaks for the time you live there.
Other important things to think about when buying a home to rent out for vacations, especially if you want to take advantage of tax breaks, are that the home must be fully furnished and that any rentals you do make must be at full price. Weeks you rent to friends and family for half price don't count.
Another thing to think about is the insurance you'll need for the property you're buying to rent out for vacations. Due to the high risks in the business, it's important to have enough insurance. You might want to think about building insurance, contents insurance, public liability insurance, cancellation insurance, and accident insurance.
The best way to get a mortgage for a property you want to buy to rent out as a vacation home is to work with a specialist broker. The broker will search for the best mortgage on your behalf and is considered to be essential. You could get a mortgage on your own, but you wouldn't have access to the same resources that a broker does. Mortgages are hard to understand at the best of times, and when it comes to a buy-to-let property, it gets even harder.
