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[ Buying or Selling Property ]
Is a holiday unit at the coast a good investment?
Answer:
It can be if you are careful to distinguish between an investment and a luxury. If purely for investment, the returns can be as good as permanent lettings if it is let for half the year at twice the normal rental.
This means that you use the unit when it is not let rather than letting it when you are not using it. If however, you want it solely for your own holidays thinking it will serve as an investment as well - think again.
None of the expenses (including interest) is tax deductible so it could be an expensive luxury. By the time you have created your wealth, you should well be able to afford a luxurious holiday unit that you can use at any time you so desire.
We seem to be in the middle of a recession. Is it still a good time to buy rental property?
Answer:
The herd mentality of the population is such that everyone buys when everyone else is buying and sells when everyone else is selling. (Statistics show that most investors bought in the midst of the last property boom when interest rates and property prices were at their highest!!)
Successful investors look on a downturn in the economy as a great time to buy and they then take all the necessary steps to ensure that they are able to hold long-term to reap the rewards of future recovery.
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