Investing in holiday homes by Nila Sweeney

By |

You've spent a week sprawled out on the sand and you're wishing the holiday never had to end. Then you see a pretty little beachside shack for sale and alongside the price tag is the promise of up to $1000 a week in holiday letting income. An investment property and a free annual holiday all rolled into a single postcard-perfect package? It's a dream come true.

Or is it? When you get back home finance friends shake their heads and say you got too much sun, the initial maintenance bill arrives and talk of an airline strike makes you wonder if you've invested in property or tourism.

There is no easy answer. A holiday home can be a property investor's best friend, with high annual returns, extra tax benefits, excellent capital gains and an affordable annual vacation. But it can also be your worst nightmare, with gross returns halved by management fees, months of no income and few appealing escape routes. Fortunately, packing the right strategies alongside the sunscreen when you embark on holiday home investment can ensure you don't get burnt.

To read the full article, get the latest issue of Your Investment Property magazine out on sale now.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Top Suburbs : menai , st peters , freshwater , alexandria , tuart hill

go back

Get help financing your investment

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here