How to Invest in a Holiday Home in Scotland

If you find the right location, investing in a holiday home can be excellent business. One of the best places is Scotland--with vast, empty countryside such as the highlands, it attracts plenty of tourists all year round. In addition, the laid back culture and its stunning lakes, peaks and hills, make rural Scotland the perfect place to hang your boots once you retire.

Instructions

Difficulty: Challenging

1. Research holiday properties in Scotland by looking at what is available at the Scottish estate agents (see Resources). Remember that cottages aren't the only option and is is also possible to rent static caravans.
2. Make a decision on how you want to use the property. Short-term rentals are very lucrative, making almost as much in a week as a long term rental can in a month. However with a long-term rental you have more control, and the trust that can develop between you and the occupier is something money can't buy.
3. Decide which location suits your needs. If you are looking to make money you need to invest in a house that will attract customers. A home in Argyll is likely to be near the beach or alternatively Loch Lomond and of course Loch Ness are huge tourist attractions. As a pointer the three major geographical areas in Scotlands are the Highlands and Islands, the Southern Uplands and the Central Lowlands.
4. Contact your solicitor. If you decide that your property is going to be a business you will need help with the legal aspects of the acquisition.
5. Get business advice. Often the best place to go is with the people you bank with. They offer advice on such matters as overheads, tax and how to write an effective business plan.
6. Find a mortgage broker. For a fee he can help you find the best mortgage for your property. The mortgage link below enables you to search for the mortgage brokers and mortgage advisers in your area.
7. Buy to let. This is currently a popular option and mortgages for such investments are relatively flexible, but you will need proof of long term rental prospects.
8. Get a mortgage for short term rentals. Because business is more likely to be up and down, you will find the mortgages for such an investment more expensive and harder to come by.

Tips & Warnings

• Lenders require equity from the borrowers existing home, or for the borrower to take out a traditional mortgage and prove that their personal income can cover monthly repayment.