Holiday house?

Have been going up to partners families holiday home, it's great property, they also have a boat and jetski up there.
Both the boat and jetski have been to the mechanics a few times in the last couple months..... definitely BOAT @TAJ
Partners Dad loves it up there, wants the property to be kept in the family for generations.

 

A boat is about $1,000/m/year to upkeep. Maybe a bit more if it’s in a penn/and bigger.
Over the life I would say that’s pretty accurate.
If I use the boat 100days a year its $100/day of usage. If I use it once its $10,000.

A day on the boat costs maybe $200 for 5 people. A weekend is probably about $400.

Taking them to the movie costs about the same (including a drink/ice cream after).

So per hour of entertainment it’s cheap. It’s only expensive if not used.

Blacky

 

Fortunately as of late Mornington Peninsula holiday houses have benefited from strong capital growth (2nd top in Australia), rising rents in 2018 and being in Melbourne’s popular holiday playground or as it has been dubbed ‘The Hamptons of Victoria’. The area really combined the most ideal coastal holiday destination on the fringe of Melbourne with a great investment opportunity. The popularity of Airbnb on the western side of the peninsula really shows the viability of this mixed use.

 

I think you may be buying the wrong boats Blacky . My 6.15m boat, including depreciation, has on average cost me $2200 per annum over last 12 years (excl fuel).

Some years I get better value than others.

 

True. I wouldn’t spend nearly $1k/m/year.
but wait till you need a new engine $15k-$20k , and the trailer packs it in $5k.

I’m not sure I would be comfortable doing the trips I do with a 10years old outboard!

Blacky

 

Depends on how many hours you have on it and how well you look after it doesn't it? Hence the $1000/m

 

Your own holiday home - no booking needed, go there whenever you like, some maintenance done whilst on holidays to balance the relaxation time with being productive. Sure rational decision is to equate each use of the holiday home property on a nightly rate basis, but why bother? It is there to be enjoyed.

 

I just re read my own posts above, along with those sensible comments by @Scott No Mates and @PMC Property and others... and had a chuckle given what happened last night.

A former client pops over, he bought a waterfront down this way, he is now absolutely a friend. He had holidayed down here for 20+ yrs, bought it with an even split of $ and emotion (actually more personally motivated than financial)... but then he renovated and did holiday letting PROPERLY. He said he got to the top 5% of the agent's holiday rent roll and was solidly positive cash flow. Then last yr he had a few big changes with life and work in Sydney and decided it was time to fast track the move down here (was gonna wait for another 5 yrs or so). He now lives down here and loves it. I thought to myself after he left... positive cash flow, location, own home. All my original thinking about holiday let never working financially or never mixing business and pleasure (which is still probably good sensible advice for most people)....and he proved it wrong outperforming on all counts. I am super happy for him such a lovely fellow.

Maybe you can have your cake and eat it too sometimes?

 

Moving to his place in Sydney may not be your answer.

 

I do believe its sold