Are holiday homes worth it?

As the summer comes to a close and we look back at the wet summer we mainly had in Ireland, I think about conversations I had with my wife about holidays homes and are they worth it.

Holiday homes aren’t cheap. You are talking about hundreds of thousands of euro. That is taking a large amount of liquid capital and putting it into something that will not generate a return. It is a cost as you have management fees and utility bills to pay for.

It depends. If you buy a holiday home in Spain or Portugal, you get the weather but will you get the use? It is a lot more effort to get there, with flights and transport from the airport. You are unlikely to be commuting there every weekend and back to work during the week. If you have a place abroad, you are more likely to go for extended stays.

Then you have to look at what stage are you and your family at? If you have a young family, will your kids make friends there and be able to play unsupervised? There is obviously the language barrier too, which should not be discounted. If the other families are from that country, are you going to make friends with people you have difficulty communicating with?

If you are retired and don’t have kids with you, you will be more comfortable with being with yourself and have more free time to spend there.

There are very different laws involving property abroad that you should familiarise yourself with. You can be landed with unpleasant surprises with the cost of selling the property in the future.

For me, renting abroad is a better option. I can rent an apartment for a month for a few thousand euro. If I like it, I can book it again for next year or I can try somewhere else.

I think a holiday home gets its best use in Ireland and the main reason is convenience. A few weeks ago, my wife, kids and their friends went to Brittas Bay for the day. I met them after work and we went for something to eat (I was there as a taxi for the lads who had got the bus down and needed a lift back). It was a beautiful day and on the way to the beach, you pass all the mobile home sites along the way.

These are all gated communities and everyone is in the same situation…on their holidays. Both kids and parents make friends on the site and kids can roam around the place without being watched constantly by their parents. Kids can spend their summers down there running around and playing (and not indoors on devices).

Being able to get there in an hour or two in the car is the key. You can decide on a Friday night that you will to the holiday home the next morning. The most popular spots for us Dubs is Wicklow and Wexford, so it won’t take much more than an hour (depending on what time you leave). Even if you’re going to Kerry or Donegal, it won’t take more than 4 hours.

You are also familiar with the way of living, you are in Ireland afterall! It is also straightforward when you come to sell it. You know how a property is sold in Ireland.

Steven Barrett

26 August 2024