But it’s a risk that many have taken, as realestate.com.au reports more than half a million Aussies own a holiday home.
So do holiday homes in idyllic locations live up to the dream or are you better off putting your cash in more traditional capital city markets?
We have taken a look at what some of the experts say on the matter.
- Avoid buying in a single industry town
If tourism is the only industry keeping your sleepy seaside village from nodding off permanently, it’s probably a bad place to put your money, reports realestate.com.au. Look for towns with diverse industries that can withstand a downturn in one sector.
- Look at population growth and infrastructure plans
If your holiday home dream involves escaping the urban rat race – be careful, very careful. Destiny Group chief executive Margaret Lomas tells Your Investment Property magazine that only country towns with rapidly rising population growth and large scale infrastructure plans will stand a chance of offering capital growth.
- Choose a property close to popular amenities
Location, location, location is key in any market so you need to make sure your holiday home is close to popular tourist attractions and amenities including restaurants, shops, transport and eye-popping views, reports realestate.com.au.
And so the verdict? If you’re primary goal is investment, follow the advice of the Australian Financial Review and don’t do it, “there are far better options out there”
