What to look out for when buying a vacation home

Considerations when buying a vacation home

The choice is (almost) made; you are going to buy your own vacation home. A place where you and your family can enjoy at any time or a nice investment with an interesting return. But what exactly should you pay attention to when buying a vacation home? This, and more, we would like to map out for you.

In addition to the budget and your wishes regarding the location and the vacation home, it is important to look into subjects such as additional costs, the land on which the home stands, financing and, of course, whether all of this fits your possibilities.

Before you enter the next stage of the purchase process, it is important to determine for what reason you want to buy a vacation home. Is it for personal use or (partial) rental? In this phase, several points, such as additional costs and fiscal aspects, in fact depend on the reason for the purchase.

Are you planning to (partially) rent out the vacation home? Then you can focus your orientation mainly on a vacation home on a vacation park. At TopParken, our professional rental organization takes care of the entire rental for you; from booking to final cleaning. The common goal of our rental organization?

If you buy a vacation home on a vacation park, you must take into account various, additional costs such as park fees*, waste disposal fee and costs for the use of internet and television programming. Some of these additional costs depend on whether you (partially) rent out the vacation home.

Optional additional costs are for example costs for collective CV maintenance, glass washing or garden maintenance. Within garden maintenance at TopParken, we work together with local, professional gardeners. By carrying out various, seasonal jobs, our owners are relieved of the worry and a uniform appearance is created.

In order to protect your possessions from damage, various insurances must of course be taken out, such as building and contents insurance. More information on vacation home insurance can be found online or requested from your insurance company.

*Park fees are costs for maintaining the infrastructure, biodiversity, facilities and appearance of the vacation park.

Have you already looked into the different options in terms of renting or buying land? Buying a vacation home on your own land has the advantage that you own the entire lot. The vacation home is therefore on the grounds of the vacation park, but the land on which your home stands is yours. Even if the vacation park is sold or goes bankrupt, for example, you remain the owner of the cottage and the land.

If you buy a vacation home on rental land, you will be cheaper in the short term because you only buy the home itself. On the other hand, you will incur additional annual costs for renting the land.

Resort de Brabantse Kempen - Bosvlucht 4 persons - 228 - Exterior - 1

Own use

Park Westerkogge - Leijhoeve 20 6 persons - 49 - Exterior - 2-3

Combination of own use & rental

Recreation park Beekbergen - Veluwe Hoeve 4 persons - 157 - Exterior - 2

Full rental

Most likely, you have already mapped out your budget. It is important to take into account all the costs involved in the purchase of a vacation home. This is not only the selling price of the vacation home, but also costs such as transfer tax, brokerage, notary fees and subsequent maintenance costs, fixed costs, additional costs and insurance.

With mapping the budget, also comes the method of financing. You can finance a holiday home from your own resources, for example with the surplus value of your house or by means of a (personal) loan/mortgage. A combination is of course also possible, where you finance a holiday home from your own resources and take out a mortgage. Our advice? Let a mortgage advisor inform you about this.

If you are interested in financing a holiday home with a mortgage, it is important to realize that you cannot deduct the mortgage interest. A vacation home falls into box 3 in the tax return, this is income from savings and investments.

More information about the possibilities for financing your own vacation home can be found on this page.

Of course, there are also various tax aspects involved in purchasing your own vacation home. The exact tax aspects depend on your personal situation and how the vacation home is used. For example, the 21% VAT paid on the purchase of a vacation home can be fully or partially reclaimed if the vacation home is fully rented out. This depends on the number of days the vacation home is made available for rental.

We provide more information on tax issues on this page.

Determine budget

Own use or (partial) rental?

Mapping requirements (location, size, rent or buy land, etc.)

What are the additional costs and insurances?

Mapping funding

Obtaining information on tax issues

New

Berkenhof

Resort de Brabantse Kempen - Lage Mierde, Noord-Brabant

€ 164.950 Excluding VAT

60 m²

6 people

2 bedrooms

1 bathroom

Module Special met wellness

Park Westerkogge - Berkhout, Noord-Holland

€ 164.675 Excluding VAT

55 m²

4 people

2 bedrooms

1 bathroom

What to look out for when buying a vacation home?

Considerations when buying a vacation home

Own use or rental?

Additional costs and insurance

A vacation home on rental or purchase land

Own use

Combination of own use & rental

Full rental

Financing your own vacation home

Fiscal aspects

Checklist for buying a vacation home

Location of own vacation home

View our selection of vacation rentals:

Berkenhof

Module Special met wellness

TopParken Sales