Holiday rental property investments
2009 certainly brought some challenges and at the end of it was the Christmas Holidays, which are the annual holidays for many workers. The past Christmas holidays gave a very good indication of holiday areas that managed to sustain visitor numbers through that particular season and following such a difficult financial year.
Why I have brought this topic up is because for those investors who are looking to purchase holiday accommodation in high rise apartments as part of their investment but also to use themselves, the recent figures would give a good indication of a holiday area that will most likely perform well during other financially difficult times. There are pockets of holiday destinations that have had high rental numbers and these would certainly be worth considering if you intend to purchase holiday accommodation.
When looking at holiday accommodation try to purchase where there is an 70% plus occupancy rate, but if the building is older make sure that it is in good condition, and if not what is in the slush fund and what plans are being made to improve the state of the building.
If the building is fairly new, find out how the high occupancy rate was obtained (was it through a heavy telemarketing program). These are great for getting the occupancy rate up and returns in the future, but sometimes the accommodation rates are so reduced that it is not so good for the unit owner’s return.
Filed Under: Property Investment Tips
About the Author: 
