
Most of us us have dreamed at some stage of owning a holiday home. Around half a million UK households already do — and the number is expected to grow now that Covid restrictions have been eased. But, warns ROBIN POWELL in his latest article for RockWealth, if you’re thinking of pursuing your holiday home dream your watchword should be caution. There are several disadvantages and potential pitfalls you need to think about.
Elizabeth I had it cracked. Faced with the standard seasonal dilemma – pay for holiday accommodation or buy a second home of one’s own – she alighted instead upon a most satisfactory third way: pitch up at the house of some hapless peer, complete with a cast of thousands, and leave him to foot the gargantuan bill.
Take, for instance, her East Anglian staycation in September 1578. According to British Heritage, just three days of “supper and tarrying” at Lord North’s country estate near Newmarket, had the effect of setting His Lordship back by £762 – a cool £220,000 at today’s inflated rates. Much of it went on food, including no fewer than 23 species of edible bird, ranging from dotterel to peewit. But there was also the obligatory welcome pack of jewellery to consider, as well as hay for around 2,000 horses. A bargain break for Gloriana; potential ruin for Lord North.
Sadly, not many of us can rely upon an army of obliging nobles to finance our holiday whims. For most people it comes down to a binary choice: fork out for a week in a hotel or villa — frequently with everything laid on — or purchase the delights of a holiday home and accept all the hassle with the highs.
CLICK TO READ THE FULL ARTICLE
ROBIN POWELL is the founding editor of The Evidence-Based Investor. He works as a journalist and consultant specialising in finance and investing, and as a campaigner for a fairer, more transparent asset management industry. He is the founder of Ember Television and Regis Media, and is Head of Client Education for RockWealth and Evidence-Based Advisers.
ALSO BY ROBIN POWELL
If I can give up meat, you can too
How do bad advisers manage their own money?
PREVIOUSLY ON TEBI
Is Australia’s affordable advice dream fading?
Book-to-market: Is its explanatory power declining?
Why young investors should embrace EBI
Which country will outperform next is irrelevant
Tactical asset allocation vs static indexing: Who wins?
The Great Wealth Transfer: Are you ready for it?
Why aren’t women more involved in household financial decisions?
Investing’s untapped market: people with simple needs
FIND AN ADVISER
The evidence is clear that you are far more likely to achieve your financial goals if you use an adviser and have a financial plan.
That’s why we’re now offering a service called Find an Adviser.
Wherever they are in the world, we will put TEBI readers in contact with an adviser in their area (or at least in their country) whom we know personally, who shares our evidence-based investment philosophy and who we feel is best able to help them. If we don’t know of anyone suitable we will say.
We’re charging advisers a small fee for each successful referral, which will help to fund future content.
Need help? Click here.
Picture: Megan Andrews via Unsplash
© The Evidence-Based Investor MMXXI