Summer is almost upon us, and that means hundreds of thousands of Australians will be heading to holiday destinations across the country for a bit of well deserved R & R.<\/strong><\/p>\n What it also means, though, is that some of them will inevitably come back having been bitten by the holiday bug, with grand plans of buying their own holiday home.<\/p>\n But does purchasing a holiday home stack up as an investment?<\/p>\n Be cautious when investing in a holiday home. Picture: Getty<\/p>\n<\/div>\n Ask most property experts about investing in a holiday home and their response will usually be along the lines of \u201cbuyer beware\u201d.<\/p>\n But if you do decide to pursue owning a holiday property, here are some key things to consider if you want it to make money<\/a> for you.<\/p>\n The challenge of owning a holiday home is that the times of year that you\u2019ll want to use it are also the prime periods for making good rental income<\/a>.<\/p>\n If you want to make good money from leasing it out, you\u2019ll probably need to forgo your summer fling and allow it to be booked as a rental throughout those times.<\/p>\n So if you\u2019re buying it in the hope of using it for regular getaways yourself, you\u2019ll need to adjust your expectations regarding how much money you can make.<\/p>\n You\u2019re better off forgoing getaways at your holiday home at peak times if you want to make money. Picture: Getty<\/p>\n<\/div>\n Just like with regular residential properties, the best money you\u2019ll make on a holiday home will often be from capital growth \u2013 provided you choose the right property.<\/p>\n Just ask anyone who bought a beachside holiday home on Melbourne\u2019s Mornington Peninsula 15-20 years ago.<\/p>\n Why location is key\u00a0<\/strong><\/em><\/p>\n Buyer\u2019s agent and director of Property Mavens, Miriam Sandkuhler, says \u201clocation and the supply and demand factors\u201d are crucial considerations when choosing where to buy a holiday home.<\/p>\n If it\u2019s somewhere that people will want to buy property in general, and not just for holiday homes, that\u2019s a good indication that demand will remain high and drive price growth.<\/p>\n Sankuhler says locations that aren\u2019t reliant purely on seasonal crowds are also a better bet.<\/p>\n \u201cYou\u2019ve got to have a look and think, \u2018Well what else is in the area that will attract people here during the low months, so we can still make money during that time?’\u201d<\/p>\n \u201cIt\u2019s just about having awareness of the location of the property and how you can generate revenue in the off-season, and what will draw people to stay in your property during the off-season.\u201d<\/p>\n Not all holiday homes are created equal.<\/p>\n Some key tourist areas are designated as exclusively \u201cshort stay\u201d zones, which, as the name suggests, means properties within those zones can only ever be used for short stays, and can never be a permanent residence.<\/p>\n Homes located in short stay zones can be an issue when you go to sell. Picture: Getty<\/p>\n<\/div>\n Sandkuhler says that while these properties might be appealing because they\u2019re cheaper to buy, the limitations imposed on their use mean you\u2019ll have less buyers when it comes time to sell.<\/p>\n \u201cThey\u2019re usually more affordable because they\u2019ve got that limited zoning. But it\u2019s harder to resell down the track, so there\u2019s risk associated with it. The more rigid the zoning, the higher the risk,\u201d she says.<\/p>\n Instead, look for properties that can be bought and used as somebody\u2019s permanent home at some point in the future.<\/p>\n Some homes are designed and built for the express purpose of accommodating people on holiday.<\/p>\n Sandkuhler says these homes appeal from both an owner-occupier and rental point of view, as there are more options for how they can be used.<\/p>\n \u201cI\u2019ve seen purpose-built holiday homes where they\u2019ve built it so that you walk into a central entryway and on the left-hand side there\u2019s two bedrooms, bathroom, kitchen, living and dining, and the whole side is lockable. And then on the right side it\u2019s the same thing: two bedrooms, bathroom, kitchen, and a bigger living and dining area.<\/p>\n \u201cThose properties are able to be rented out half a house at a time, or the whole house can be taken out, or if you\u2019ve got an owner-occupier who wants to have their half of the house and rent out the other half, they can do that too.\u201d<\/p>\n Some homes are designed for the express purpose of accommodating people on holiday. Picture: Getty<\/p>\n<\/div>\n Sandkuhler says these types of homes also have greater potential for capital growth, as they\u2019ll be more desirable to more holiday home buyers when it comes time to sell.<\/p>\n \u201cA floorplan or a built-for-purpose property like that will be more valuable from a resale point of view because of that flexibility, and will also give a landlord greater potential to rent it,\u201d she says.<\/p>\n \u201cEven if in the off-peak they\u2019re just renting half of it at a time, it\u2019s better than nothing, and then if someone wants to rent the whole house they can do that, too. That sort of consideration and planning in built-for-purpose homes can be substantially more beneficial than just buying any old house and hoping that everyone will want to rent it from you.\u201d<\/p>\n
\n <\/p><\/div>\n Realestate au <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"![\"holiday](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/11\/08160307\/holiday-house_2000x1500.jpg?resize=2000%2C1500&ssl=1\")
<\/p>\nBe clear about the purpose<\/h2>\n
![\"family](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/11\/08160312\/family-beach-house_2000x1500.jpg?resize=2000%2C1500&ssl=1\")
<\/p>\nNail the location<\/h2>\n
Check the zoning<\/h2>\n
![\"tourist](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/11\/08161912\/tourist-town_2000x1500.jpg?resize=2000%2C1501&ssl=1\")
<\/p>\nSeek out flexibility<\/h2>\n
![\"holiday](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/11\/08161916\/holiday-home_2000x1500.jpg?resize=2000%2C1500&ssl=1\")
<\/p>\n