\r\n\tHoliday apartments are generally not suitable as an investment. They are difficult to finance and the income is usually irregular or generally uncertain.\r\n<\/p>\r\n
\r\n\tProperties located far away generate travel costs or costs for external service providers. Abroad, language and legal barriers are added. Therefore, this article focuses only on holiday properties in Germany.\r\n<\/p>\r\n\r\n \r\n\t\tIf the property is used often by the owner, one could offset the cost of comparable holidays that were saved.\r\n\t<\/p>\r\n\t \r\n\t\tIf the holiday property is also popular with others and therefore well booked, a return-oriented owner would only use it when it is otherwise vacant.\r\n\t<\/p>\r\n\t \r\n\t\tSo if you wanted to improve the profitability of a holiday apartment by using it yourself frequently, you’d face two limitations.\r\n\t<\/p>\r\n\t \r\n\t\tNot only would you always vacation in the same place; for profitability reasons, you’d also have to adjust your own holiday times according to guest bookings.\r\n\t<\/p>\r\n<\/section>\r\n\r\n \r\n\t\tProximity to the beach, a location in the mountains or near a tourist attraction increases the likelihood that a holiday property is profitable in the long run.\r\n\t<\/p>\r\n\t \r\n\t\tIf in addition to a good location the property is also well-suited as a holiday home and has a minimum size, it may qualify as a long-term investment.\r\n\t<\/p>\r\n\t \r\n\t\tThe problem of potentially irregular income or prolonged drops due to pandemics or similar events remains\u2014issues that typically don\u2019t affect residential real estate.\r\n\t<\/p>\r\n<\/section>\r\n\r\n \r\n\t\tFor holiday apartments and houses, the saying still applies: the three most important factors for real estate value are location, location, and location.\r\n\t<\/p>\r\n\t \r\n\t\tWith residential properties, location value is often assessed by population trends. For holiday homes, you\u2019d also have to monitor both your own occupancy rate and regional tourism trends.\r\n\t<\/p>\r\n<\/section>\r\n\r\n \r\n\t\tBanks tend to reject or scrutinize financing for holiday homes more than for residential real estate, resulting in:\r\n\t<\/p>\r\n\t \r\n\t\tLocal bank solution: It may be worthwhile to contact regional banks, as they often have more experience with holiday rentals.\r\n\t<\/p>\r\n<\/section>\r\n\r\n \r\n\t\tAccording to an investigation by Stiftung Warentest the conclusion<\/a> is that holiday properties are not a secure investment, but rather entrepreneurial ventures with risks and opportunities.\r\n\t<\/p>\r\n\tException 1: It pays off better because you like to use the property yourself frequently<\/h2>\r\n\t
Exception 2: The property is so attractive that it pays off long-term<\/h2>\r\n\t
Location, location, location\u2014even for holiday homes<\/h2>\r\n\t
Holiday homes are harder to finance<\/h2>\r\n\t
\r\n\t\t
Holiday homes are an entrepreneurial investment, not a financial asset<\/h2>\r\n\t