I invest my money in holiday homes, and I think you should too. Why? Let me explain that to you
00:00 So if you would like to know why, and even how you can be making money with holiday homes, this is the video to watch.
01:38 How do holiday homes differ from normal real estate?
Now in most cases, people take care of the home they live in, your place, as they’ll be considering this place, as their home. Now, that’s all good, but when you’re a real estate investor, and you would like to make money through tenants, you have to know that you can’t charge these people insanely high prices. The moment you own a holiday home, you could rent this place out to others and charge them a nice price each night they stay there. If you let people stay in it a couple of times, you can have a lot of money!
03:45 What to pay attention to?
The first issue what you will come across, is the payment. Tenants who live in your homes wires money to your bank account.
In holiday homes, people will have to pay per booking. Once people have left the place, you’ll get your payment.
Now yes, there are all kinds of costs like cleaning, management fee or filling up the stocks in your holiday home, so that’ll all be deducted from the total income.
The second issue to pay attention to is the location of the property. Now, you could have that very fancy home in France, but if people don’t want to stay there all year round, then you won’t attract enough people to stay in it.
And there goes your revenue…
So, investing in a property that has a great location for short stay is very important.
07:41 Target audience
The target audience you’ll be serving is completely different when you compare this to the residential homes.
If you prefer to make money more actively through real estate, holiday homes are absolutely an easier way to run this as a business.
Yes, I say business, because the tax authorities will charge you more, since you’ll be more actively involved, and you charge people money for the service you give them, whereas, investing in residential real estate.
10:24 Bonus: Rent to Rent
And since you stayed until the end, I would like to introduce the concept that got me started with holiday homes. And that is called, Rent to Rent.
Now, there is so much to find on this topic on Google and YouTube, and I absolutely suggest you do this as well. But the concept is very simple, instead of buying a property, and becoming the full owner of the property. You could also rent a property from the landlord. Meaning you become the long-term tenant, but instead of you living in the property, you’ll make a business from the property, with approval from the landlord of course.
Meaning, if you have enough revenue from that property to pay off the bills like rent, management fee, usage fee and such, you’ll just be left with income.
I thank you for watching and see you on the next
Happy investing!
