Investing In A Holiday House? Location Is Everything
Before delving into a holiday-home investment, it is important that you consider all options. Therefore, you ought to take your emotions out of the equation and give thought to the rental returns. Therefore location really is king.
Location has a lot to guarantee: When deciding whether or not to buy a holiday house or unit as an investment, you would be best served to consider location first. OR, more still, it could guarantee the success of your investment property if you will be renting it as a holiday destination.
Just like Allom Holidays Director Brent Pilkington says… At times people face difficulties in deciding 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.
There are things to consider like travel time and expense, rent rates, local attractions and activities; because you need to make sure that your property location matches up with market demand.
Generally, some of the best rental returns properties are in the busier suburbs; reality though is that holiday rental buyers are looking at some of the peripheral suburbs that are quieter. Explains Pilkington
He equally adds that… this choice is based on when they are ruled by their heart rather than their head, as such they could end up with property that may be popular through peak periods but that delivers much more seasonal rent return.
Pilkington further suggests taking occasional markets into consideration too: In his words, “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 your area.
Such a decision (of considering whether the investment holiday property you want will be as lucrative as you think) often requires the advice of an expert, mainly for an investor who isn’t familiar with the area as residents may be, so rather than taking a dangerous gamble, investors will be well served to seek advice.
Hence before you start looking for the perfect holiday home, it is important you speak to a Bear loans broker about the finance.
*This information is not to be relied upon without speaking to your finance broker, tax agent or financial adviser.
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