Some thoughts about buying a holiday home

[sharkattack]

Don't rush into buying a holiday home. You don't give any detail about where or what you are buying or at what stage of life you are at. But I know loads of people who bought holidays home but just found within a few years they were using it less and less and practically all have offloaded them or let them out permanently. Often life just gets in the way. I would not buy anything much more that 1.5hrs away otherwise going there for weekends is just not practical on a regular basis and with fuel now heading for 2 euro a litre its another consideration.

 

[ClubMan]

How much would it cost to rent a place for the relevant periods of the year for the next few years versus the cost of purchasing a place and everything that comes with that (maintenance, insurance, mortgage, taxes, utilities etc.)? Perhaps the former might be more economical, less hassle and more flexible (you are not tied to the one place for you holidays)?

 

[Leper]

I've covered these aspects in previous threads so I won't get too involved in obvious drawbacks of owning a holiday home in Ireland (and indeed abroad). But, I will say that when push came to shove with our holiday home on the Wild Atlantic Way it was the need for frequent grass cutting (and the two hour each way journey) became the straw that broke the camel's back (and particularly my back). When we sold it there was so much relief. [see previous threads]

I'm not saying that buying a holiday home is a bad thing. But, know your limits of endurance. Get your limits right and owning a holiday home could be a terrific experience.

 

[DrBob72]

Don't rush into buying a holiday home. You don't give any detail about where or what you are buying or at what stage of life you are at. But I know loads of people who bought holidays home but just found within a few years they were using it less and less and practically all have offloaded them or let them out permanently. Often life just gets in the way. I would not buy anything much more that 1.5hrs away otherwise going there for weekends is just not practical on a regular basis and with fuel now heading for 2 euro a litre its another consideration.

So we're 50 (almost) 1 in college and the other in two years, work gives a lot of flexibility with remote working, only "need" to be in the office once or max twice a week, sometimes can go weeks without being there. so we can comfortably use second home 4/5 days a week and almost full time during the summer, outside of school term for the next two years that is...

Commute would be approx 3-4 hours allowing for 30 minute EV recharge, which also thankfully negates much of the transport fuel cost concerns.

How much would it cost to rent a place for the relevant periods of the year for the next few years versus the cost of purchasing a place and everything that comes with that (maintenance, insurance, mortgage, taxes, utilities etc.)? Perhaps the former might be more economical, less hassle and more flexible (you are not tied to the one place for you holidays)?

Have considered this, unfortunately its not an option, could rent permently but not the type of place we would want, anywhere that does shorter term rentals is exceedingly expensive in the summer months (June - Aug) costing in the region of 1500 pw if. It may be a lower cost compared to the fully burdened annual cost of owning somewhere but would be a very considerable outlay none the less...

I've covered these aspects in previous threads so I won't get too involved in obvious drawbacks of owning a holiday home in Ireland (and indeed abroad). But, I will say that when push came to shove with our holiday home on the Wild Atlantic Way it was the need for frequent grass cutting (and the two hour each way journey) became the straw that broke the camel's back (and particularly my back). When we sold it there was so much relief. [see previous threads]

I'm not saying that buying a holiday home is a bad thing. But, know your limits of endurance. Get your limits right and owning a holiday home could be a terrific experience.

will go back and take a look at them, we're aware that its not all "sunlight uplands" and a concious not to add another burden so going into it with eyes open. Family had them as kids so remember the downsides as much as the benefits.

We're also looking at it in the long term as a potential semi - retirement home, a holiday home for the family and potential grandkids! as such its not a purely financial driven plan.

thanks for all the input

 

[Leper]

Some more positive thoughts on buying a holiday home:-
1. Holiday home is a bolt-hole and away from the buzz of the city.
2. Walking in an area where you don't live is a healthy and learning experience.
3. Weekends away can be good for "binding" a family.
4. You can rent it out when not being used by you.
5. Friday Evening 4.30pm - You can just load up the car and head off at a minute's notice.
6. If you fall in love with the holiday home area you can look forward to spending more (possible permanent) time there in your retirement.
7. Possible investment which may pay dividends if you decide to sell later.
8. Good Sense of Achievement and reward for your efforts.

 

[Leper]

OK! Some negative thoughts why you might not want to buy a holiday home:-
A. Expense and possible exposure to ready cash shortage.
B. Continued Maintenance of house.
C. Constant need to keep garden in good trim.
D. You will need somebody local to look in on the house (broken pipes, dampness, flush toilets, run taps, etc).
E. If holiday home is very isolated there can be fear of leaving spouse alone there.
F. Proximity to shops is an issue (many locals may want you to shop locally there).
G. Join local GAA club (usually the monthly Club Lotto fee is included in membership) - I bet you think I'm joking!- I'm not.
H. Neighbours might not be as friendly as you first thought.
I. Flooding - check if house is in a flood plain.
J. Feelgood can wear out - it can have a finite lifespan.

 

[fayf]

We looked into it extensively, and the end result, is, we would only be interested in a “lock & leave” setup, so would have to be almost maintenance free, so that means, an appartment or a small house with no garden, but with a patio/yard out back.

Also, would have to be walking distance to at least, some shops/restaurants pubs, so doesent have to be major town. - i don’t ask for much !

There are a good few places around the country i love staying for a week or two in the summer, but when it comes down to it, whats there to do in the winter,- thats an important question, medium sized towns within a few minutes of a beach, is probably ticking a lot of boxes, but when i look, the prices have really shot up in the last 2 years, so very poor value right now.

Assuming it was almost maintenance free, i then look at the bills, LPT, Utility, Bins, Tv licence, house Insurance, possible management fees if its an appartment, general replacement of items and appliances, so can add up to maybe 2 to 3 grand a year, so i kind of say, i don’t think so.

When its currently so reasonable to fly to Europe, to a very wide choice of very different destinations, that really seals it for me. I’l still
Holiday in Ireland, just not, all the time.

Of course, if i wasn’t health & reasonably fit, and not keen to fly, it would be a very different story.