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With concerns over stockmarket performance and rising house prices making buy-to-let in the UK less viable, British investors are quickly recognising the benefits of buying a holiday home abroad with the purpose of renting it out to other UK holiday-makers.

Self-catering holidays are becoming more and more popular as an increasing number of people shy away from traditional package holidays and make their own way, often using the internet to plan and book their holiday.

Where To Buy?

Try to buy a property in a country or resort that you like, as you may want to stay there yourself during periods when it is not being used by paying guests. Traditionally, the most popular countries are France, Spain, Portugal and Cyprus, however property prices in these countries have risen much in line with UK prices.

Other countries, such as Italy and Greece are also worth looking at, whilst the more adventurous may want to try places like Croatia, where property prices are lower. However, these too are rising fast, so you will need to be quick.

Whichever country you are buying in, remember: Location, location, location. This rule still applies wherever you buy a property. Ensure the resort where your property is based, offers enough amenities to tempt the punters in and has good communications, such as road, rail and airport, allowing easy access.

What To Buy?

Newer properties will require less preparation and on-going maintenance, which is a key advantage if you are not planning to visit the property often and don't want the expense of employing a local contractor to ensure it's upkeep.

Whatever type of property you decide to go for, make sure that it carries all of the basic amenities for washing, cooking and cleaning. If you need to buy furniture for the property, check local fire and safety regulations to ensure you purchase the right type.

You should also look into the local legal and tax regulations, as these can differ to those in the UK. There are many scare stories of people buying unregulated property and having to make expensive corrections, but these can be avoided if you do your homework. Your local agent should be able to help and there is a lot of advice available from sources on the internet.

How Much Can You Earn?

If you own a property in places like France, Spain and Portugal, you should be able to earn around the same amount of money per year as you would from a similarly sized property in the UK. This will naturally vary depending on a number of factors, such as the resort and condition of the property.

Unlike a long-term let, it is likely that you will only be renting the property out during the peak holiday periods, but charging anything from £400 - £600 per week for an apartment or small villa.

This means that you will need to ensure that you find enough paying guests to occupy the property over the peak period to cover your mortgage. To supplement this, you might be able to find people who will rent your property at a lower rate during the winter period, on a longer-term basis, such as six months.

Managing And Marketing Your Holiday Home

One way to manage your holiday home is to contract an agent, who for a fee will take on the whole process of marketing the property, taking bookings, checking guests in and out, and arranging maintenance of the property between lets.

Alternatively you may wish to be involved in the management and marketing of the property yourself. Most resorts have a number of agents who will ensure that the property is cleaned after each group of guests and will check them in and out.

You can then advertise your property in a range of different media, such as specialist holiday magazines, local newspapers or on holiday home websites, such as JMLvillas.com

So overall, buying a holiday-home to let out can be a viable alternative to buying a UK property to let. As with any business venture, it is worth seeking further advice and doing your research before committing to anything, but just remember that prices are rising and you will need to be quick to pick up the bargains.

More information and resources to help you sell your home can be found on our Holiday Homes page.