It is undeniable. 2020 has changed a lot of things. From the use of masks increasingly widespread in countries where they were never used as a mass device, to the continuous disinfection of hands and surfaces and the increase in consumption of cleaning products, up to the tourism sector which finally after months of various lockdowns has had a change in trend.
If even before the Covid emergency, holiday homes were increasingly present in the lists of favorite destinations, with the easing of restrictions, most people literally went looking for a place to spend their summer holidays.
And again this year, holiday homes have been a favorite destination, regardless of the traveler’s country of origin.
And the reason is easily understood. A holiday home is often preferred over a traditional hotel because it guarantees more privacy, more freedom and perhaps the feeling is also of greater security as there are no strangers in close contact.
This sentiment is also confirmed by the numbers. The Airbnb site recorded a 2000% increase in traffic to their site in May alone compared to the previous year. In short, all looking for the ideal home to spend their holidays .. and it was understandable, after a year spent in restrictions, people want to travel, but with an eye to safety.
Other portals such as Booking.com or TripAdvisor now have sections entirely dedicated to holiday homes.
If on the one hand this means fewer bookings for hotels and guesthouses, on the other it also means great opportunities for those who have a second home or decide to modify parts of their property to transform it into holiday accommodation.
The question remains whether this is worth it.
The purchase of a second home is usually a good real estate investment and, regardless of the purpose, remains an excellent form of saving. In fact, it is known that a property is unlikely to suffer a sharp drop in prices for the long term … and if you manage to conclude the offer with a price lower than the market value, it is almost certain that within ten years you will be able to enjoy a small return.
If it is transformed into “tourist” use then this investment becomes even more productive.
Here are some practical examples: let’s take a typical apartment (3 rooms) therefore suitable for up to a maximum of 4 people. Let’s assume it’s a medium-intensity tourist location, so let’s assume an average occupancy of 120 nights per year. They are practically 4 months, 5 if you add up empty days due to changes.
We are not discussing the selling prices of the property as that varies a lot from the area of course, we are trying to understand if it is worth making an investment like this.
On average (also here it varies according to the area and the period) a good standard apartment, which offers the minimum services asks its guests an average of € 120/130 per night.
We are not talking about the apartment taken and rented as it is, but about an apartment in good condition that also offers good services to those who stay.
Doing a quick calculation we get that: 130 x 120 nights = € 15,600 of revenue
We have calculated 120 nights, but obviously if you are good and you are in a high potential area it could also be over 200 nights ..
Let’s take the € 15,000 in revenue as a reference.
From these we have to remove a 20% tax (if you are private and do not have a VAT linked to the tourist rental business). We have about € 12,500 left, to which the fixed costs must be removed, including the condominium expenses if it is an apartment in a residence, the fixed costs of electricity and gas, internet and other fixed costs.
After these expenses we can say that about € 10,000 remains in the homeowner’s pocket, but he will have to take care of check-in, check-out, cleaning and changes … otherwise this figure could be lower.
Out of a total of 120 nights, let’s say that € 10,000 of net income is a great deal and allows you to have a second income if the property is already owned or in many cases allows you to pay the installment of a possible mortgage .. in short. even in the worst case scenario, it remains a good form of saving.
Of course, you cannot expect to have big income with little effort .. but it is an effort that pays off, there is no doubt about that.
And not only that, for those who are passionate about tourism, having a holiday apartment available is a great way to understand this sector, develop new skills and experiences and it is a way to meet people from all over the world.
But why do we at Artesive talk to you about real estate investments and holiday homes?
Well, when you want to give a fresh and renovated look to your holiday apartment, our adhesive films can be a great alternative to replacement, for example for home furniture.
Take a tour in our tutorials and you can take inspiration to take the plunge and decide to throw yourself into this entrepreneurial adventure that is expected to be increasingly growing in the coming years.
Artesive does not propose this article as a financial investment of course, but as a basic idea to exploit a potential that can be an unexploited property or a business idea and obtain a higher income.
The estimates and figures indicated in this article are to be considered indicative.
What do you think of it? Better Hotel or Holiday Apartment?
15/07/2021 - Articles