Who doesn’t love holidays? It’s easy to fall in love with the holiday lifestyle and laid back locations. Without the distractions of work, traffic, lots of people, and regular life commitments your holidays are usually a refreshing experience.
Owning a holiday home might be a dream for some, but you should consider the upkeep before committing.
It also doesn’t take much for the mind to begin to wonder whether you could afford to buy a piece of holiday paradise and enjoy it as you please.
Fun times can be had and happy memories made in a holiday home. It might also turn out to be a lucrative investment in real estate in Australia. However, holiday homes come with a range of costs and commitments which can easily turn a dream into a nightmare. Here are four things to consider when purchasing a holiday home.
How strongly are you committed to the location?
This may be obvious, but you can’t move your holiday house. Before you commit to a location you should try to experience it during all seasons and conditions. It also worth getting an idea of future developments and town planning in the area. If you think it is a nice place for a holiday home, it is likely that others do as well. Your quite little shack on the water might end up shadowed by a high rise.
Can you achieve better returns through other means?
If you’re mostly interested in purchasing a holiday home as an investment, consider if you could get better returns elsewhere. A higher returning investment could be better even after you take some returns to pay for holiday accommodation.
How will you manage and secure the property?
It is important that your property is secure and managed while you are away. If you don’t intend to holiday let the property you will still need someone in the area to check up on your house and sort out any issues. This will cost money and cause stress.
You are responsible for the property
This is both a good and bad thing. One of the benefits of renting accommodation is that when it is no longer suitable, broken or dated you can simply change. If something goes wrong, you call someone else to fix the problem. This isn’t the case when you own the property. Consider how much work you put into your current home and whether you are willing to do the same while you are on holidays.
A holiday home might give you the type of lifestyle you have always dreamed of. Along with all the great benefits of a holiday home remember to consider the responsibilities, cost, and stress of owning property.