Know this has been done before but buying a holiday cottage/flat?

[fivecandles]

With property prices falling would it be a good idea to buy a cottage or flat to rent our for holidays. Thinking of Lake District. Has anyone done this? How much would an agent charge to promote the cottage and maintain it?

Not sure it is a particularly good time to buy one, especially if your sole purpose is to make money. A large national specialist with a big web presence will probably charge about 15% upwards BUT many demand that you let the property with them for the whole of the high season plus half terms and Easter holidays (except a fortnight for personal use) so if you want to use the property regularly yourself, it becomes tricky. Also, bear in mind that if the recession really bites, holidays will be one of the first things to be sacrificed so your rental income may not be as high as you expected it to be.

If you are buying somewhere lovely that you will get a lot of use out of, and maybe live in one day, then it can be a great idea. A character property in a desirable location will hold it's value better than most houses. Our agent charges 25% for ours (!) but they are excellent - they market the property brilliantly and we always get fully booked throughout the season, so overall we probably do better than if we went without an agent. it also means there's no hassle with non payments etc. Our agent doesnt restrict when we use it ourselves. Some agents do. However, it's worth remembering that if you use a lot of the high season for your own use, it will seriously lower the income you generate from it. Caretaking/gardening costs arent cheap, but you can claim tax back for loads of things - all your cleaning costs/utilities/interest on mortgage etc as long as the property is available for holiday lets for a certain number of weeks per year.