Holiday homes: how to buy a place in the sun

Furnished holiday homes can be a tax-efficient way of buying to let, says Sarah Moore.

941_MW_P22_Inv-Prop

Buying a bolthole could prove lucrative
(Image credit: Jon Boyes)

If you're contemplating buying a holiday home to rent out, there are several important issues to consider before you can start perusing brochures of exotic beach houses. First, there's the small matter of how to pay for it. A standard mortgage doesn't allow you to let out the property, while a buy-to-let mortgage isn't suitable either: lenders would assess affordability on the assumption that you may not be able to let it out full time.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Sarah is MoneyWeek's investment editor. She graduated from the University of Southampton with a BA in English and History, before going on to complete a graduate diploma in law at the College of Law in Guildford. She joined MoneyWeek in 2014 and writes on funds, personal finance, pensions and property.