The Real Value of a Holiday Home

A holiday home is often assessed by its location, purchase price and potential for appreciation. Yet its long-term value may depend just as much on how ownership works once the keys have changed hands.

Discussions about buying a holiday home abroad tend to focus on the financial decision. What does the property cost? How can the purchase be financed? What are the tax implications, and how is the local market expected to develop?

These are essential considerations. But unlike most financial assets, a holiday home is also expected to shape how its owners spend their time. It is bought not only for its monetary value, but for the stays, relationships and experiences it is intended to make possible.

The property must also function throughout the year. Maintenance, administration, insurance and local suppliers have to be managed, often from another country and in another language. What initially appears to be a straightforward lifestyle investment can therefore require considerably more time and attention than anticipated.

For some owners, that responsibility is an important part of the attraction. They value complete control over one particular property and enjoy being closely involved in its development and upkeep. Others place greater value on flexibility, professional management and the opportunity to spend time in several locations.

The central question is therefore not simply whether a holiday home represents a sound financial decision. It is whether the form of ownership supports the reason for buying it in the first place.

Affordability is only the beginning

Financing, taxation, local regulations and ongoing costs must naturally be understood before any property purchase becomes binding. Owning a home across national borders involves legal, financial and administrative conditions that vary from one country to another. Tax obligations, insurance requirements, building practices and financing arrangements may all be unfamiliar, making qualified financial and legal advice important to ensuring that the decision is responsible and financially sustainable.

But financial capacity and professional advice address only part of the decision. They do not necessarily answer the question that may matter most over time: How should the home, and the responsibilities that come with it, fit into the life its owners actually want to live?

The reality of ownership begins when the purchase is complete. A holiday home does not exist only during the weeks when the family is staying there; it must also function throughout the rest of the year. Maintenance has to be managed, local suppliers and contractors coordinated, and insurance, utilities, taxes and administrative matters handled. Decisions may need to be made from a distance and without the owners having seen the issue themselves.

These demands rarely feature prominently in the original picture of life with a home abroad. They tend to become clearer when ownership moves from aspiration to everyday reality.

What should ownership make possible?

As the considerations become more concrete, the conversation often changes. Location, architecture and price remain important, but they are joined by a different set of questions. How much responsibility do the owners want to take on themselves? How often will the home realistically be used? Should it provide one permanent base, or would the opportunity to spend time in several locations better suit the family’s way of living?

Traditional ownership remains the right choice for many. Full control over one particular property can create a strong sense of identity and belonging. Owners may value choosing every detail themselves, becoming part of the local community and returning to the same place year after year.

Others have different priorities. They still want to own rather than simply rent, but may not want to concentrate both their capital and their holidays in one location. Nor do they necessarily want to manage a property abroad entirely on their own.

The relevant question is not whether one form of ownership is universally better than another. It is which structure best supports how the owners want to use their time, their capital and their homes.

Different ways to own

Alongside traditional sole ownership, professionally managed holiday home co-ownership offers another possibility. The term is sometimes used interchangeably with fractional ownership, although the legal and practical structures behind the two descriptions can vary considerably.

In broad terms, co-ownership means that several owners hold a genuine financial interest in one or more properties. The terms governing ownership, use, costs, decision-making and management are defined in advance.

Those details matter. Prospective owners should understand what they legally own, how access to the properties is allocated, how costs are shared, who is responsible for maintenance and administration, and what happens when an owner eventually wishes to sell.

Some models are built around a share in one individual property. Others give owners an interest in a collection of homes. Management may be left largely to the owners themselves or handled by a professional organisation. The quality of a model therefore depends not only on the properties, but also on the transparency and effectiveness of the structure surrounding them.

The MyHomes model is one example. Here, 29 families jointly own a collection of five holiday homes across Europe through an owner association. MyHomes sources, renovates and furnishes the properties, while the responsibilities, costs and conditions of ownership are organised from the outset. Administration, maintenance and the practical operation of the homes are then managed professionally on behalf of the owners.

This allows each family to combine genuine ownership with the opportunity to stay in several homes without having to manage every practical detail themselves. The defining difference is not simply that ownership is shared, but what the structure makes possible.

Ownership should protect its purpose

More than a decade of dialogue with over 650 families has given MyHomes insight into the considerations that shape decisions about holiday home ownership. Preferences concerning homes, locations and travel patterns naturally vary, but one point repeatedly emerges: the financial value of the properties is only part of the equation.

Owners also consider the value of the time spent in the homes, the ease of travelling and the convenience of not having to handle every practical matter themselves. Many want the sense of belonging that comes with ownership, while expecting the framework surrounding the properties to support their time away rather than compete with it.

As Finn Christensen, CEO and founder of MyHomes, puts it:

Most people do not buy a holiday home because they want more administration, more suppliers to coordinate or a larger share of their free time devoted to practical tasks. They buy it to create a setting for relationships, experiences and periods of uninterrupted time that can otherwise be difficult to make room for in everyday life.

If the responsibilities surrounding a home gradually begin to occupy more space than the enjoyment of it, the property may retain its financial value while its personal value slowly diminishes. The appropriate form of ownership will vary, but it should continue to support the original purpose of the purchase.

A return that can be felt

Public conversations about holiday homes tend to focus on purchase prices, market developments, financing, taxation and potential capital appreciation. That is understandable. A home abroad is a significant financial decision, and its economic implications must be taken seriously.

But a holiday home differs from many other assets because its return is also lived. Its value is reflected in how often it is used, how straightforward it is to travel there and whether the time spent there creates the freedom, connection and quality of life that motivated the investment.

A property may perform well financially and still fail to provide the experience its owners imagined. Conversely, a home that becomes a natural and frequently used part of family life may deliver a form of value that cannot be fully captured on a balance sheet.

The considerations should therefore not end with the question of whether the finances can support the purchase. They should also include the space the home will occupy in the owners’ calendars, in their thoughts and in their family life. Will it be used as often as expected? Will travelling there feel simple? Will the practical responsibilities remain manageable? And will the form of ownership continue to suit the family as its needs change?

These are not secondary lifestyle questions. They are central to whether the investment ultimately fulfils its purpose.

The real value of ownership

The best holiday home is not necessarily the largest, the most expensive or the one with the most spectacular view. It is the one its owners look forward to returning to: the one that is used rather than merely maintained, that creates a sense of belonging without becoming an unnecessary burden, and that continues to support the reason it was chosen in the first place.

For some families, that will be one home under their complete control. For others, it will be the opportunity to co-own several holiday homes across Europe, supported by a professional organisation that manages the practical details.

Because the real value of a holiday home lies not only in what we own, but in the life our ownership makes room for.