Buying a holiday home is a dream for many Danes. A holiday home can offer freedom, peace, and a retreat from everyday life – but it is also a major financial decision.
The holiday home market works differently from the market for year-round homes – both in terms of financing, location, and running costs.
Easter often marks the start of the holiday home season. When spring arrives, activity in the market often picks up because:
- the weather improves
- many people use days off for viewings
- the summer holidays start to factor into planning
- For many buyers, spring is therefore the starting signal to explore the possibility of buying a holiday home.
This also means that competition between buyers can increase during this period.
Holiday home purchases are often more emotionally driven. For most people, a holiday home is not a necessity but a retreat.
That is why the decision is often more emotionally driven than when buying a year-round home.
As buyer's agents, we often see that buyers focus heavily on atmosphere, views, and location – but overlook some of the practical considerations.
For example, buyers can overlook:
- maintenance needs
- ongoing running costs
- local plans (lokalplaner) and easements (servitutter)
- restrictions on renting out the property
It is therefore important to combine the dream of the holiday home with a thorough review of the practical and financial circumstances.
Location matters even more for holiday homes. When it comes to holiday homes, location is often the most important factor for the price.
Holiday home prices can vary significantly depending on:
- the distance to the water
- the distance to major cities
- how popular the area is
In general, demand is highest for holiday homes located 1-2 hours' drive from the largest cities. This makes it easier to use the house spontaneously on weekends and holidays.
Travel time is often underestimated. The travel time to the holiday home can have a big impact on how much you actually end up using it.
If the holiday home is far away, several hours of travel can quickly become a barrier to weekend trips.
In addition, travel costs can also play a role, especially if there are:
- bridge tolls
- ferries
- long drives
It can therefore be a good idea to think about how far you realistically want to travel to reach your holiday home.
Running costs surprise many buyers. When buying a holiday home, many people focus mainly on the purchase price.
But the ongoing costs can also be significant.
Typical running costs for a holiday home include:
- property tax
- insurance
- electricity and heating
- water and sewage
- ongoing maintenance
It is therefore important to make a realistic budget for both the purchase and the ongoing running costs.
Holiday homes often require more maintenance
Many holiday homes are built using lighter construction methods and are located close to the coast.
This means they can be more exposed to:
- wind
- moisture
- salt from the sea
- This can lead to more wear and tear and a need for more frequent maintenance.
- Older holiday homes in particular may require renovation, so it can be a good idea to have a building surveyor inspect the house.
Financing a holiday home is different. Financing a holiday home differs from financing a year-round home.
A holiday home can typically only be mortgaged (belånt) up to 75% with a mortgage-credit loan (realkredit), while year-round homes can be mortgaged up to 80%.
This often means:
- a larger down payment
- a larger bank loan
It can therefore be a good idea to look into financing early in the process.
Can a holiday home be a good investment?
Some buyers also consider holiday homes as an investment.
In some areas, renting out holiday homes can provide extra income, but there may also be restrictions in local plans or homeowners' associations (grundejerforeninger).
It is therefore important to look into:
- rules on renting out the property
- tax implications
- demand in the area
- A holiday home should first and foremost be bought as a retreat – and only secondarily as a potential investment.
A buyer's agent's advice for holiday home buyers. Although a holiday home is often bought with the heart, it should still be treated as a major financial decision.
It is therefore a good idea to:
- research the area thoroughly
- understand the ongoing costs
- check local plans and easements
- review the condition report (tilstandsrapport) and other documents
- consider travel time and how you will use the house
A holiday home should be a retreat – not a financial surprise.
Get professional advice before you buy a holiday home. If you are considering buying a holiday home, it can be a good idea to get professional advice before signing a purchase agreement.
A buyer's agent can help with:
- reviewing the purchase agreement
- analysing the property's documents
- assessing the price level
- negotiating the price
Fill out the contact form so we can talk about how we can help you buy and finance your holiday home.
