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Should I buy to live or invest to rent for holidays?

investnow

investnow

New Member
I've got money for a mortgage deposit and have been trying to find a house I like where I live and am currently renting, but it's all very expensive and I don't even like the houses. It's like tiny apartments for a fortune because they are near the capital city.

About 2 weeks ago I went on holidays to a coastal place like 30 minutes away and stayed in a lovely place with swimming pool, and the owners told me about their story: they bought that house with land around really cheap, and built everything themselves: the swimming pool, the garden, etc. And now they rent it for holidays for tourists, surfers, etc, because the beach is quite near.

And it was like they planted a seed in me, because I would love to do something like that.

Houses are very cheap around there, and there are even houses to renovate which are even cheaper, with a big space outdoors too. So I would have the money for the deposit and for build it.

The only thing is, whilst I do that, I would still have to continue renting. So basically that would be an investment so later on I could buy a house to live that I really like.

Is this a crazy idea? Thank you.
 
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Mark Skin

New Member
I don't think it is a crazy idea.
Buying the first house, the one where we go to live in is a liability.
To rent a house is also a liability.
So if you have the resources, the time and a good business plan it would be great.
The only thing I would not do if I were you is to commit the total amount of your resources to this. Just because it would unbalance your global investing portfolio for long time.
 
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realdeals

Active Member
So, are you considering buying land to build a holiday rent or would this be somewhere you would live?

Also, if you are looking to build/renovate your first property investment this is quite a jump from no investment in property. While in theory you can put together a plan for a build/renovation, it will require money, there will likely be delays and you could also see overspends. Then again, if the area you are looking at is within commuting distance is there potential to buy a property and commute to work?
 
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Mark Skin

New Member
Lately I've been reading a very well made explanation about real estate investment strategies on revenueland.
I can't say how much it applies to your case, but it clarified some things for me. In short, even investing in real estate is always at risk or losing money, it's no joke. It mentions 6 strategies including real estate crowdfunding. Another useful resource is the biggerpockets podcast.
 
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starrjack

New Member
This is a nice idea for investing in real estate.But you need to gain more experience and knowledge.
 
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Longterminvestor

Administrator
While in theory there is nothing wrong with your plan, it is quite a big jump going from a relatively new start to property investment to a new development. There are quite a lot of very useful e-books on this website:-


You may find them helpful.
 
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Longterminvestor

Administrator
Have you taken a look at planning permission and what has been approved recently in the area? That said, the UK government recently announced plans to loosen planning red tape which should open the door for many more successful planning applications across the UK.
 
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