Before you take the leap into a holiday-home investment, it’s essential that you consider all angles. This means taking your heart out of the equation and giving thought to rental returns.
In fact, location has a great deal to do with the success of your investment property if you will be renting it as a holiday destination.
While it would be great to have a holiday-home investment where you would prefer to travel to when investing it’s important to also consider what locations and niche markets have good rental returns.
You need to make sure that your property location matches up with market demand. Things to consider are travel time and expense, rent rates, local attractions, and activities – particularly those available year-round, not just in peak times.
For example, busier coastal suburbs may offer more consistent rental returns than quieter peripheral suburbs that may be popular only in peak holiday seasons.
- Brisbane 13.4%
- Adelaide 12.9%
- Sydney 11.4%
- Perth 11.2%
- Melbourne 9.6%
- Hobart 5.3%
- Darwin 5.1%
- Canberra 4.3%
Deciding whether the investment holiday property you want will be as lucrative as you think often requires the advice of an expert, particularly for investors who aren’t as familiar with the area as residents may be, so investors would be well served to seek advice instead of taking a gamble.
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Photos from Freepik
