General (main property discussion here) - AST or Holiday Let?

I am interested in buying a property on the South coast.

The idea is to take out a small mortgage and in the short term (5-8 years) rent out the property to cover the mortgage and be left with a holiday/retirement home for ourselves.

The thing is I've done a bit of research and I really can't decide between letting out on a long-term let (6 or 12 monthly tenancies or longer) or using the property for weekly holiday lets - the latter seem to bring in the same weekly income as an AST would for a month.

I'm sure I'm missing something - apart from the hassle factor is there a big financial implication in rental from holiday lets versus rental from long-term lets?

Many thanks

Jane

Hi Jane

Are you saying that 1 week of summer let is equivalent to 1 month of longer term rent from AST?

There are a number of aspects to take into account, this diferential between the incomes being one of them.

You may struggle to cover your mortgage interest payments with rent on a south coast property in my experience, although I may well be proved wrong.

Also, housing requirements in terms of long term worker / commuter and requirements of holiday makers will probably be different - so you are probably right to decide this up front. It might be nicer to retire to a holiday makers' home too!

Best regards

John