25th January 2023 / Sarah Lowry: Top Tips for Buying a Holiday Home

We have certainly seen that interest in regional and coastal areas of Victoria has increased, with the median house price in Somers, San Remo, Port Fairy, Trentham, Point Lonsdale and Barwon Heads rising 100 per cent or more in five years.

PropTrack enconomist, Eleanor Creagh said the pandemic was the key theme between the regional areas that had surged in price and popularity.

Blairgowrie homeowners have some of the biggest winners on the Mornington Peninsula in terms of percentage boost, with a 99 per cent gain from $855,000 to $1,700,000. Fletchers Mornington Peninsula Director, Joshua Callaghan, also cited Covid as the main factor in the huge price growth, as buyers sought lifestyle and luxury during two years of lockdowns. "That velocity of lifestyle buyers really lifted the marketplace."

The median house price in Bright was turbocharged by a mega 158 per cent, from $485,000 to $1,250,000 between November 2017 and November 2022. Post Covid, it is now a year-round weekend destination, when it was previously much more seasonal.

Buying a holiday home is a wonderful ambition that creates visions of happy families and fun times that will stay with you forever. Remember that this purchase is an emotional decision, so try to keep in mind the practicalities as well.

Some owners love having a holiday home while others have found it more work than they'd expected or don't use it as much as they'd hoped.

Here are some factors to consider before falling in love with an idyllic beach house, bush hideaway or chalet in the snow.

The Money Question

A holiday home may not be your best investment, so you need to accept that this will be an emotional purchase. There may still be a financial upside, but better returns may be found elsewhere.

Location

Resist purchasing too far away from your primary residence. The longer the road trip, the fewer times you'll do it. If you buy four-plus hours away, be prepared for the drive.

Happy Families

It's lovely to have family share the property and invite friends over for those magical times like Christmas, New Year and Easter. Just a heads up that if you have children, once they become teenagers they may well complain about the predictability of their holidays. And once they're independent, they'll do their own thing.

Peak Buying Times

Search for a holiday home out of season. Don't pick up a mountain chalet in the ski season or a beach house at the height of summer because you'll pay peak prices. Out of season, you'll get a true sense of the local town and its amenities, and there'll be fewer buyers. Even for an emotional purchase, there are good and bad times to do it.

Double the Bills

Obviously, you'll get twice the bills from the likes of councils and utility providers. Factor these into your budget. You can only set them against tax if the property produces revenue.

Renting Out

Renting out the property using an online service, such as Airbnb or Stayz, may help to pay down any loan. Just be mindful that not everyone will treat your holiday house as you would. Damage and loss may occur. You'll also need to find a good cleaner, possibly a gardener and (usually) will need to supply linen.

Property Manager

It may be sensible to use a property manager to help you. Their charges will be up to 12.5% of the rental income.

Your Access

If you do decide to make your property available for rent, always make sure you block out the calendar for when you want to visit, otherwise you will likely find that your favourite holiday times are booked out.

Contact some our local offices to assist if you're considering purchasing a holiday home:

Fletchers Bellarine | 5258 2833

Fletchers Mornington Peninsula | 5988 0022

Fletchers Ocean Grove | 5255 1721