Investing in a holiday house? Location is everything

Before you take the leap into a holiday-home investment, it is essential that you consider all angles. This means taking your heart out of the equation and giving thought to rental returns - which means location really is king.

When deciding whether or not to buy a holiday house or unit as an investment, you would be best served to consider location first. 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.

“Sometimes people are torn between where they would prefer to holiday as opposed to looking at the logistics of what will rent better, and what niche markets they can target to provide better rental returns,” says Accom Holidays Director Brent Pilkington.

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.

“The best rental return properties on the coast are in busier suburbs, but often holiday rental buyers are looking at some of the peripheral suburbs that are quieter,” explains Pilkington.

Pilkington adds, “that’s when it’s ruled by their heart rather than their head, and they can end up with a property that may be popular through peak periods, but that delivers much more seasonal rent return”

Pilkington suggests taking occasional markets into consideration too: “I think the key thing is to choose areas that are not just holiday locations. Somewhere that has other things going on besides holidays. This means that when it’s not the holiday season, there are still other reasons for people to visit your area.”

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.

Before you start looking for that perfect holiday home, talk to the team at Skybridge Capital about the finance. Contact us today.