Many people who are considering holiday home investment will at some point come across an affordable older property that looks like it has plenty of potential. These fixer uppers could be properties that are in good condition for the most part, but simply need to be modernised with contemporary fittings. They could also be seriously neglected properties that come at a bargain price, but require a fair amount of work.
How do you determine whether the property you are viewing will be worth the cost of renovation? And, is it really worth the time and effort to look at older properties for your holiday home investment?
Should You Consider a Fixer Upper For Your Holiday Home Investment?
Just because a property is older, or not quite as fancy as, say, a new apartment or villa, it doesn’t mean it has no potential to become an income-generating holiday home that you can rent out to tourists. One of the upsides to older properties is that many of them were built to last. Many older properties have original wooden floors and doors, while some may have unique features that set them apart from modern day buildings.
If you truly enjoy the challenge of fixing up or restoring properties to their former glory, then it makes sense to consider an older property for your holiday home investment. If, on the other hand, you are not willing to meet any of the challenges below, then it may not be worthwhile. Some things to keep in mind include the following:
- Old should not mean broken. Above all else, the property should be safe and secure enough to be habitable. Issues that you certainly want to avoid include major dry rot, issues with floor boards or ceilings that could be hard to repair and anything else that could make it difficult to renovate. There is a big leap from finding a worn but otherwise stable gem at a good price, and purchasing a derelict property for a low price, only to realise that it will cost far more to restore than it would to purchase a property in better condition. Use common sense as your basis for deciding on whether it is a worthy investment or not.
- Look at the potential as well as the current state. If the property has a large back yard, but there is no swimming pool, deck or established garden, you may still find that it has the potential to create an inviting outdoor space. Likewise, if there is ample room inside with a large kitchen that has outdated features, you can look at renovating to bring the kitchen into the current era. Things to look for include flooring (wooden floors are always good), original fittings (fireplaces, door and window frames, ceilings, beautiful light fixtures and similar features) and space (large rooms, high ceilings and adequate gardens).
- Think about how you can market the property. Will there be a sufficient demand for an older, restored property? Accommodation trends come and go, but a beautifully renovated holiday home that has been lovingly restored will often be sought-after among certain travel markets. You will need to do your homework to find the best way to position your property however. You will also want to think about working with an experienced, dedicated holiday rental property manager who can market your property while also providing day to day management, guest services and bookings management.
Already found your dream property? Contact Totalstay today to arrange a free evaluation. We will help you determine the best strategy to enjoy healthy returns on your holiday home investment.