All Topics / Help Needed! / Holiday properties

Register Now for My Free Live Training Series!
Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of arborphilearborphile
    Participant
    @arborphile
    Join Date: 2004
    Post Count: 11

    I am planning to invest in property in the near future and have been doing some research into the opportunities in my area. Recently I have spotted a few holiday type properties that would only yield rent over short period of the year. I assume with properties near the snowies that you would get about 12-13 weeks of rental, probably get about 15-16 for properties on the south coast of NSW. These properties seem to present +cf potential as they reap high rental rates in the order of $750 to $1,000pw.

    Are these estimates reasonable and what pitfalls would be unique to these types of investments?

    Arb

    “I am not young enough to know everything” – Oscar Wilde

    Profile photo of elika7264elika7264
    Member
    @elika7264
    Join Date: 2003
    Post Count: 160

    Hi,

    first thing — check with your bank or broker regarding latest lending criteria for holiday units. If you want to borrow more than 70% you may find some problems in your way. With some lenders it could be less. This could in turn present difficulties for you if you plan to onsell the unit at some stage in the future.

    Regards,
    Helen

    Profile photo of arborphilearborphile
    Participant
    @arborphile
    Join Date: 2004
    Post Count: 11

    Thanks Helen

    Why are lenders more wary with holiday properties? What would be ideal would be a lender that was willing to wait till the holiday season for the first repayment.

    Arb

    “I am not young enough to know everything” – Oscar Wilde

    Profile photo of depreciatordepreciator
    Member
    @depreciator
    Join Date: 2003
    Post Count: 541

    I can’t see a lender doing that, Arb. I settled on a holiday unit on the mid NSW coast earlier this year. I borrowed extra at settlement to carry it through the winter. Right now it’s costing me around $1,500 per month. I’m gambling (or I should say ‘speculating’) that come summer, the tide will turn. Christmas rentals will be around $1,500 per week. It’s going to be at least a year before I know whether the thing will break even or not. I’ve had good capital gain, though, and there are great on paper deductions – over $16,000 in depreciation next year.

    Scott

    Profile photo of YorkerYorker
    Member
    @yorker
    Join Date: 2004
    Post Count: 306

    Not really an investment. I look at holiday houses as something I’ll buy once I’m financially free.

Viewing 5 posts - 1 through 5 (of 5 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.