Before you take the leap into holiday-home investment, it is essential that you consider all angles. This means taking your heart out of the equation and giving thought to rental returns.
When deciding whether or not to buy a house or unit, you’d be best served to consider location first. In fact, location has a great deal to do with the success of your investment property if you will be renting it as a holiday destination.
“Sometimes people are torn between where they would prefer to holiday as opposed to looking at the logistics of what will rent better, and what niche markets they can target to provide better rental returns,” says Vision Property & Finance investment specialist, Matt Ivers.
You want to make sure that your property location matches up with market demand. Things to consider are travel time and expense, rental rates, as well as local attractions and activities.
“The best rental return properties on the coast are in busier suburbs, but often holiday rental buyers are looking at some of the peripheral suburbs that are quieter,” explains Matt.
“That’s when it’s ruled by their heart rather than their head, and they can end up with a property that may be popular through peak periods, but that delivers much more seasonal rent return.”
Matt suggests taking occasional markets into consideration too. “I think the key thing is to choose areas that are not just holiday locations. Somewhere that has other things going on besides holidays. This means that when it’s not the holiday season, there are still other reasons for people to visit the area.”
Once you’ve researched the options and decided on your holiday home you probably need advice from an expert in investment properties and financing.
More about Matt Ivers
Matt started Vision in 2000 after working in the media marketing and sales industry for over 10 years, culminating with a stint with a large mortgage firm. Now, Matt is one of the country’s leading finance brokers, helping hundreds of clients develop their property investment strategies. You can contact Matt here or email and Matt will call you.
What people say:
“Matt Ivers has been taking care of my bank finance for almost 15 years and this long successful association leaves me satisfied that my best interests are being taken care of. When we discuss business, as a client I get the strong sense that Matt is working hard to understand my requirements and find options that best suit me. This leaves me with confidence because of his extensive experience and the team that he has gathered to work with him.” Anson D
“Matthew Ivers at Vision did the finance for my first house back in the year 2000. It was a small company back then as Vision itself had only just started. It was obvious to me that Matthew (and his business partner David) were going to be successful in their field as my questions were always answered promptly and their knowledge of the various products they had on offer was excellent. Over the last 14 years they have done all of my finance (five properties in total) and every time the service has been as good as I could have hoped. Recently, Vision has moved into being involved in the finding and financing of investment properties and having used the service I have found it to be fantastic, taking the hours out of going through plans for new developments and just having Vision earmark the ones that look the best (and in potential growth areas) has been a great advantage for me. I would have no hesitation in recommending Matthew, David and the rest of the Vision team to any of my friends looking for a quality finance broker.” Steve M
Part article supplied by MFAA