Thinking of buying a vacation home? Start with this crucial first step!

Why do you want to buy a vacation home? Learn how to make the right choice and avoid disappointment after the purchase.

Buying a vacation home seems appealing: a place of your own to relax, but also an opportunity to rent it out and generate a return.  Before you start searching on Funda, Huislijn, or a resort website, there’s one important question: “Why do you want to buy a vacation home?” Although that question seems obvious, we often notice that people don’t give it enough thought. Yet the answer affects everything—from your budget to the location, the choice of property type, and the return you can expect.

In this blog post, we’ll discuss the key takeaways from Lesson 1 of our buying course: Know what you want (and why). We’ll explain why this first step is crucial and how you can avoid regretting your purchase.

Many people begin their search for a vacation home with a vague idea in mind: a cottage surrounded by nature, a waterfront location, or simply “something nice to rent out.” Such a vague idea often leads to two outcomes:

You remain uncertain and don't make a decision.

You let yourself be talked into a purchase that ultimately isn't right for you.

It should be clear that you want to avoid both situations. Therefore, the first step is always: Clearly determine why you want to buy a vacation home.

The reason for your purchase immediately influences your list of requirements and the choices you make throughout the process. We distinguish three main types:

Vacation home for personal use.

Are you looking for a place where you can relax with your partner or family? You’re primarily focused on the atmosphere, comfort, travel time, and annual expenses. You’re influenced by emotions and simplicity. Keep in mind practical considerations such as:

How often will you actually use the home?

How much space do you really need?

What annual costs are acceptable to you?

Please note: Many people overestimate how much time they’ll actually spend at home. Filling out a hypothetical annual schedule (like the one we provide in the course) can help you estimate your usage more realistically.

A vacation home as an investment.

When profitability is a priority, you need to completely adjust your perspective. You’ll take a more pragmatic approach: What does the market want, and how can you make your property attractive to tenants? Consider:

A wide range of amenities for tenants

An attractive location within a 2.5-hour drive of urban areas

Appeal to certain specific target groups, such as young families, dog lovers, or active couples.

It’s also essential to think in advance about what constitutes an acceptable return for you. Do you mainly want to offset your annual expenses through rental income, or are you aiming for a net return of 6% or higher? You’ll find more information on this in the buying course, but it’s worth thinking now about the amount of time, money, and risk you’re willing to invest.

A combination of personal use and rental.

This is the scenario we encounter most often.  You want to be able to enjoy your vacation home flexibly, but you also want to be able to rent it out when you’re not there. It sounds perfect—and it can be. Still, it’s important to keep one thing firmly in mind: buy for yourself first, and only then for a return on investment. If you don’t feel comfortable with it, it’s a bad purchase—even if it makes money.

An important recommendation is to always choose a home that can be rented out in that case. Even if you’re currently unsure whether you want to do so, it might be a good idea to rent it out down the road—for example, to cover your costs. Therefore, it’s best to buy a home in a community where commercial rentals are permitted—even if you don’t plan to take advantage of that option at the time of purchase.

Once you've figured out why you want a vacation home, the next question is: What exactly are you looking for? It's essential to distinguish between your needs and your wants.

Requirementsare your deal-breakers. If a vacation home doesn’t meet them, it’s immediately ruled out. Think of things like at least two bedrooms, a brick house instead of a wooden one, or freehold property instead of a leasehold.

Wishes are things you'd like to have, but for which you're willing to make compromises. Like an extra bathroom, a sauna, or a spot right on the water.

By clearly defining these two categories for yourself, you can search with a clear focus and avoid second-guessing yourself the moment you fall in love with a “cute little house” that doesn’t actually meet your basic criteria. This prevents you from wasting time during your search and from making emotional impulse purchases.

Many people are considering eventually moving into a vacation home permanently. Please note: despite numerous recent news reports, this is still not officially permitted in the Netherlands, unless the municipality has a policy of tolerance or your situation falls under special rules. Permanent residency can carry risks, such as heavy fines or even eviction.  Are you curious about the situation at a particular park? Always visit the local municipality and inquire about the most recent policies. Also, be aware that a tolerance status regarding permanent residency is often tied to a specific individual and typically expires upon sale. Many people have already run into trouble because of this, so it’s definitely something to keep in mind.

Make it easy on yourself and take the first concrete step:

Ask yourself: Why do I want to buy a vacation home?

Choose the scenario that best suits you: personal use, investment, or a combination.

Fill out an annual schedule: How often would you actually be there?

Distinguish between your non-negotiable requirements and your preferences.

Start thinking about your financial goal: Do you just want to cover your costs, or do you also want a return on your investment?

Buying a vacation home without a clear goal is a recipe for regret later on. So don’t start with the property—start with yourself. By clarifying why you’re buying and what you’re looking for, you’ll be much better able to determine where to look and how much to spend to find something that at least meets your requirements. In the following lessons of our buying course, we’ll help you work this out in more detail, with practical tips on choosing a location, property type, and return on investment.

Browse our current listings, submit a no-obligation search request, or schedule a no-obligation consultation with one of our purchasing advisors. Together, we’ll find the investment that’s right for you!