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.
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.
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