Holiday House – Or Rental?

Holiday House – Or Rental?
Written by Berwick Tax

Holiday homes have the flexibility of being able to be used when you want, they can have tax advantages and potential to earn an income as a rental pr

A few thoughts:-

The first step is to weigh up whether the property is a good investment in its own right.

It might be wise to look in the middle of winter when you haven’t got that holiday euphoria.

If you want to keep it clean and know that all the interest you pay on the loan or all the depreciation or all the rates is tax deductible, then you need to be a normal tenant and pay rent when you use it.

Most insurance policies exclude cover when the home is unoccupied for a period of time. This period might be as short as 30 days.

If someone was in your property and the steps collapsed and they fell down, you could be sued.

Deciding whether to let an agent look after your holiday home or maintain it yourself, is another important decision.

Filed in Taxation
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