Buying a holiday house is different to buying a home you intend on living in or renting out.
Holiday rentals site Stayz director software APAC, government and industry relations Justin Butterworth said there are five things to look out for when you’re in the market for a holiday pad.
It’s an obvious one but an important one.
“Travelers want to be where the action is, whether it’s the ocean, quality dining establishments, retail hubs, hospital, university, work or transport connections – travelers are looking for convenience and accessibility,” Butterworth said.
“Beachfront properties can attract twice the occupancy and yield as a home 10 minutes drive from the water.
“Think about proximity to major cities: being situated 3-4 hours’ drive from a major city opens up a market of a million local and international guests.”
2. Supply and demand
If renting out your holiday house while you’re not using it is something you’re thinking about, being aware of local market dynamics is important.
“Keep a regular eye on fluctuations,” Butterworth said.
“While being close to the beach can often prove successful; unusual spots can also deliver superior investment returns. With no commercial accommodations nearby and limited supply, your furnished property in a suburb or bush destination could command a lot of attention for holiday, relocation or corporate travelers.”
3. Property type
While houses are perfect for families and groups, apartments can better suit couples or corporate travelers.
“Ensure you have the right combination of living space, bedrooms, bathrooms and parking – not only for your guests’ convenience, but to reduce wear and tear,” Butterworth said.
4. Property features
When you’re on holidays you want to be comfortable, so features matter.
“Holidays are about having a relaxing fun time. Quirky properties that create memorable experiences,” he said.
“Street appeal is less important for holiday rentals as guests are more focused on the holiday rental’s characteristics and amenities, especially those that hold an aspirational appeal. Think: swimming pool, games rooms, home theatre, even a pizza oven!”
Holiday markets can have more significant price swings than city areas given the somewhat discretionary nature of the investment, Butterworth said.
“You might get a better deal buying in winter or with counter cyclical buying. Keep in mind the forward bookings deposits and cash-flow following settlement,” he said.
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