4 reasons to buy a holiday home in 2022

1. Your holiday home is also an investment

There are good reasons to buy a holiday home in 2022. It is not only a home; it is also an investment that should ideally give a return in the longer term.  For example, you do not pay tax on a profit when you sell the holiday home if you have used it yourself and the plot is under 1400 m². You can also rent the holiday home out to tourists and thereby earn a little income from owning a holiday home. It is generally a good idea to spread your investments across a mix of shares, bonds and property. When you invest in a holiday home, remember to look at its location. A better location means higher value, and the location of the holiday home can also make quite a difference to the number of potential tenants.

2. Save money on holidays

By owning a holiday home you save a lot of money on flights, car hire, hotel rooms and so on. There is no longer any need to go travelling every year, and if you need to get away from everyday life and the same view, you can go to your holiday home. If you have a family, there is even more to save by owning a holiday home. Another small advantage is that you can always go to the holiday home, even when there is not much money in the account. 

3. Holiday with friends 

More and more people are starting to buy a holiday home together with others, which gives greater financial room for manoeuvre, as it reduces the fixed costs that come with owning a holiday home. A shared budget will also mean you have a larger amount to buy a holiday home with. If you also decide to take on a larger renovation project, the work can usefully be shared between several parties. If you choose to buy a holiday home together, it would be a good idea to have a co-ownership agreement (samejekontrakt) drawn up to reduce disagreements and set out some concrete rules for the co-ownership. That way you make sure you have more fun than arguments ;-). 

4. The holiday home market in Denmark

The expectation for the Danish holiday home market is that the supply of holiday homes will rise, and prices are expected to fall by 20% between 2022 and 2023, so it is about time to strike if you would like to be a holiday home owner. Even if you choose not to use your holiday home all the time, you can consider renting it out. Holiday home prices have really picked up speed since the coronavirus pandemic began. In the 1st quarter of 2020 the average price per square metre of holiday homes sold was 15.809 kr., while prices in the 3rd quarter of 2021 were 20.878 kr. After the expected price fall, prices are anticipated to rise again during 2024.