Before seeing whether you should invest in a holiday home, it is essential that you are considering all angles. This means taking the 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 that you should invest in a holiday home you probably need advice from an expert in investment properties and financing.
Vision Property and Finance is offering a free consultation with a finance and mortgage specialist for your new investment or home upgrade. Click here to book yourself in today!