The benefits of buying a holiday home

Dreaming of buying a holiday home or planning to invest in a second home to rent out? Owning a holiday home is becoming an increasingly attainable goal for more and more people. These days, the supply is so great that there’s something to suit every budget. However, before you go ahead and take the plunge, you should carefully weigh up the benefits and drawbacks.

1. Holiday home

Fancy a long weekend or a well-deserved break? Your holiday home is there waiting for you, whenever you want to use it.

2. Student accommodation

Are your kids about to get a taste of student life? In that case, you could choose to buy student accommodation. In the first instance to use yourself and subsequently to rent it out to other students.

3. Second residence

Buying a house or a flat to subsequently rent out is certainly a good idea. You could, for example, consider a 3/6/9 contract. And use that income to pay off your loan, and with a bit of luck, have a little extra to spare.
A second home is also an excellent investment for the future. Your children or grandchildren may benefit from it one day as well. Or you can sell it when you reach the end of your career, and use the proceeds to fund your retirement.

Regardless of the type of second home you’re looking for, you’ll find plenty of interesting options to suit your needs on Immoscoop.

Good to know: if you buy a second home on or after 1 January 2024, you can no longer include the principal repayments for your loan and the premiums for your loan balance insurance in your tax return. However, you can still include the interest paid on your loan.

Check the feasibility of your plans

But there are some downsides too

Don’t forget that owning a holiday home also involves a lot of costs for the likes of insurance, maintenance, water and heating. And if you buy a flat, you also have to contribute to the cost of maintaining the lift and the entrance hall.

If you’ve bought yourself a chalet in a vacation park, the annual costs can add up to around 5 000 euros depending on the facilities offered by the park and the size of your chalet. If you prefer a flat with a sea view, you need to remember that the wind and salt can also drive up your maintenance costs.

Local councils often tax holiday homes. And you might also have to pay provincial tax and a flat-rate environmental tax. What’s more, you do not qualify for a reduction (e.g., for dependent children) on the property tax you have to pay each year on your second home.

And talking about taxes, you are required to declare an additional property, even if you do not rent it out. The property income is equal to the indexed cadastral income, plus 40%.

Is buying a holiday home a smart investment?

The answer depends on whether you buy with your heart or your pocket calculator. Decide in advance precisely what you want and expect, but above all be realistic. Buying an expensive sea-front flat in order to rent it out will probably not bring in enough money to justify purchasing it. But what if you buy a nice little place by the seaside for you and your whole family to enjoy for years to come before selling it on later? Well, that certainly constitutes a smart investment.

Whether you’re buying a holiday home as an investment or to enjoy yourself, don’t rush your decision and carefully consider all the benefits and drawbacks first.

Work out the feasibility of your plan

If you’re planning to buy a holiday home, use our handy tool to quickly check whether your plan is feasible.

Check the feasibility of your plans