26 Jul 2017

Should you Invest in a Holiday House?

Holiday House

More than 500,000 Australians own holiday homes, and for good reason. Holiday homes attract interested tenants willing to pay above-average rates for temporary stays, and when you want to go on a holiday yourself, you get to stay in a familiar property that you own.

But owning a holiday home isn’t without its complications. If you’re thinking of buying a holiday home, you’ll want to consider a few things first. Property ownership should never be rushed, and holiday homes are no exception.

So is a holiday home worth the investment for you? It’s a difficult question, but here are the factors you’ll want to consider when asking it:


The first and most obvious thing you’ll want to understand for your investment property is the return you can expect to make on your investment. Make sure you calculate the expected return for the entire year, and not just the holiday period.

To really understand the implied return, you’ll likely need to speak to your property manager and accountant. Given that holiday homes are subject to peak periods and quiet seasons, it can be more difficult than usual to understand what you’ll actually get from your investment.


In holiday home destinations that experience peaks and dips, it can be much more difficult to predict the capital growth of the area.

This is also due to cycling economic trends. When things are going well, people buy more holiday homes. When things aren’t, they’re typically among the first things to be sold. These fluctuations in buyer interest can make it hard to assess the future value of the property.


Before buying a holiday home, it’s important to ask yourself what the home will really mean to you.

If it’s just an investment property, then there’ll be no issue with tailoring its appearance and mood to suit consumers. But if you have a particular fondness for the property and want it to suit you and your individual needs, that can affect your rental return calculations and your chances of securing tenants.

Before purchasing a holiday home, be honest with yourself about how much you really want it to be your home versus how much it’s just an investment. The answer may be more important than you think.

Mortgage House

At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.

But don’t worry, we can help with that.

If you’re thinking of buying a holiday home, you can contact us for advice about the best options for you when it comes to your mortgage. The cost of your mortgage can drastically affect your financial planning, so it pays to speak to the experts about it.

Click here to speak to us!

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