Tips to make buying a holiday home a worthwhile investment

EVERYONE wants to make the holiday feeling last as long as possible which makes buying a holiday home suddenly seem like a good idea.

And it can be — just follow the experts tips and buy with your head and not your heart according to Real Estate Buyers Agents Association president Jacque Parker.

Ms Parker warns would be holiday home owners not to fall for the “romance’’ of a holiday home and use your head to make the best investment decision.

“People generally buy holiday homes with the intent on returning for regular holidays but should also consider the investment merits of such a purchase,’’ she said.

It was important to investigate rental yields, the cost of maintenance and things such as management fees and cleaning not just how far it is to walk to the beach.

Here are her tips for buying a holiday home.

1. Never buy a holiday home at the peak of the market.

“When the property market is flat a quality property in a good location will always find a buyer,’’ she said.

Ms Parker said a good question to ask yourself was: Would this property generate a lot of interest in a buyers’ market?

“If the answer is no, be very careful what you pay for it.’’

2. Have a buffer of funds to cover unforeseen expenses

Ms Parker said even partially leasing to other holiday-makers could incur unforeseen costs.

“Consider having an emergency buffer for common items that may break down more quickly or require replacement due to increased wear and tear.’’

Read more

Image courtesy of Nutdanai Apikhomboonwaroot/FreeDigitalPhotos.net

FREE Starter Pack

free-starter-pack

With everything you need to get started in property investment, development or home buying. Click here

FREE Perth Property Market Report

FREE Perth Property Market Report

With latest suburb information, growth rates and essential information for property investors and home buyers. Click here

FREE Property Briefings

FREE Property Briefings

Information sessions on the property market, latest strategies, investment and development. Cutting edge information, no sales. Click here

Subscribe

Subscribe

For the latest Hot Properties, Tips, Strategies, Property Market Info. Click here


Awards and Recognitions