Buying a holiday home could be the answer to more income, and more holidays!
Owning a holiday home seems like an expensive luxury, owning one and renting it out to holiday makers could be the answer to making this luxury more affordable.
The right holiday home may help you afford the costs associated with owning and sustaining a holiday home, while earning a bit of extra income on the side!
With some holiday homes commanding high prices of up to $3000 per night, renting out your holiday home during key holiday periods could turn your holiday home dreams into reality.
But before you jump into a holiday home investment, it’s important you do thorough research on what makes a holiday home desirable, so that you can score a holiday home that will perform well.
Find out where the best performing holiday homes in Australia are. Why are they so desirable and successful?
What is the proximity to the closest major CBD? What is the décor like? Is it modern and well furnished? Is there proximity to shopping centres, local transport, is it close to water?
Once you decide what features make a successful holiday home stand out, you can consider the fun aspects of owning a holiday home like how often you will be able to stay there yourself.
Rates of occupancy
If making a good income from your property investment is important, it’s obvious that the amount of time the property is available for rent will affect your overall rental income.
If the property is vacant for more than 6 months of the year, it can be considered as an owner occupied property, which can stop you claiming certain tax incentives.
The rent you charge for the property will impact how much income you earn from the investment. Make sure you do your research and compare properties in the area to gauge an idea.
Seek financial advice
Contact one of our brokers for advice, and for assistance in choosing the right loan product for the needs of your properties both now and into the future.
Complete the contact us form at the top of the page and we will be in touch with you shortly - we hope everyone has safe and enjoyable holidays during this festive period!