Wouldn’t life be great if you could bundle the kids in the car and disappear to your very own beach house every weekend? Sure it would in an ideal world. But the reality of owning a holiday rental may fall far short of the dream.
As far as investment locations go, you want to pick an area with good capital growth prospects. Is that sleepy seaside town going to see the population growth required to sustain property demand and price growth? Probably not.
Then there’s the question of tenanting your property year-round. More likely you’ll get tenants wanting to rent your property during holiday seasons… the same time you want to use your beach house!
But what about those families whose granny bought a fibro shack on the Gold Coast 40 years ago and now it’s worth a fortune?
Well that’s a bit of good luck on granny’s part and she probably bought it to sustain a lifestyle not a livelihood.
So the answer to the question of whether you should buy a holiday house as an investment is probably no. But as always, do your own research, seek independent advice and don’t get too emotionally invested before you’ve crunched cold hard numbers.