Buying in holiday destinations

Has anybody ever bought property in a holiday destination rented it as a holiday home, airbnb etc, then used the rental history to help attract a higher price at sale time?

This would be used as a part of a larger strategy but thinking that a rental history of 7-8%+ per year could seriously attract buyers.

*The reason I wouldn't hold even if it was attracting a great yield would be because it would quite hands on so not really part of my long term strategy.

 

I would stick to the capital cities or locations no more than what a sane person would consider a commute to the capital. Holiday destinations could be very affected with the economy. You don't want to have to rely on just one industry.

 

One should buy a holiday house for holidaying, and an investment grade property for investing.

 

Maybe I used the term holiday house too loosely, as an example the Mornington peninsula grew by something around 20% last year, while not purely a holiday destination there is a lot of "holiday homes" there.

 

I don't think people will pay a premium for the property because you got a better rental yield as a short term let. They could just buy another property in the same area and do the same thing to that other property.

 

Hey team,

Is there anyone here that would be willing to discuss their Airbnb property to the media?

 

@Gockie

 

The Mornington Peninsula's economy is being supported by increased apartment and housing construction along with tourism. Fortunately, the market isn't too far away from Melbourne and the Mordialloc Freeway will bring the area closer to Melbourne in the future. Currently, in contrast to popular belief the holiday market (Mornington Peninsula) is actually performing better than the Melbourne city market. Furthermore, prices are even falling in the city while rising on the Mornington Peninsula. As of right now, holiday markets are an ideal investment in contrast to Melbourne suffering losses. For a clear example, Portsea's 4 bedroom median has risen from 1.85M to 2.85M in the past 12 months while St Kilda's median has declined by $500,000 approx from $1,370,000 12 months ago to $865,000 today (core logic data).