From the veranda to the sea or from the mountain down into the valley and still feel at home? This is possible with holiday homes. They are not only worthwhile for your own relaxation. They are also an interesting investment. In preferred locations with first-class facilities, holiday properties can offer value stability and prove to be crisis-proof old-age provision. However, there are risks involved.

Germany is a popular holiday destination – and not only during the summer holiday season. Over the past eight years, overnight stays in Germany have risen continuously. This was determined by the Federal Statistical Office. Holiday homes and apartments are the second most popular type of accommodation directly after hotels. Many believe that holiday homes can only be rented 120 to 150 days a year. For example, banks often assume this when granting loans. But that’s not true. Holiday times as well as holidays and bridge days already come to 100 days. In a very good location and with good facilities, holiday properties can be rented in Germany almost all year round.

Holiday properties by the sea or in the mountains are particularly in demand, both among holidaymakers and self-users. But also the proximity to shopping facilities, hiking trails or restaurants as well as fast internet are important for most holidaymakers. For buyers who also want to use the property themselves, the proximity to their main residence plays a role. However, they are buying less and less in their surroundings or where they would like to go on holiday themselves, but rather make sure that the holiday home can also be rented out well.

If you decide to buy a holiday home as an investment, it doesn’t have to be a million-dollar villa. Even cheaper properties can generate monthly income of several thousand euros through high daily rents. Here, of course, it depends on the situation. In very good locations, holiday properties also have the best potential for increasing value, as they offer a higher resale value.

However, there are also risks. For example, a holiday home or apartment must always be rented out again. Normally holidaymakers rent accommodation for five to six days. This means that marketing costs are higher. Maintenance costs are also higher. Experts say that approximately 30 percent of revenues can be estimated for expenses such as advertising, a person on site for handing over keys or repairs. A rule of thumb for experts is not to spend more on a holiday home than twenty times the annual rent that can be achieved on the market.

The German Real Estate Association has calculated that investing in a holiday home is worthwhile if it is possible to rent it out 17 weeks a year. Because in this way the rental income exceeds the costs for the repayment of the loan.

Do you have any questions about investing in real estate? Please contact us! We will be happy to advise you.

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