Just wanted to ask if anybody here leases out a holiday house and what their experiences were. I realize its not the greatest strategy and many advise against it but under particular circumstances I imagine it could work quite well. We plan to one day own a hobby farm within 2 hours of Sydney, circa 1.5m, which my partner will manage as a holiday/health retreat, with a small premises on the farm which we live. I am planning on buying it in the next 5 years and considering holiday leasing it to begin with and slowly building it up to a functioning business over time prior to moving there. Would be great to hear of anybody elses experiences in doing something like this or any advice/reading material, I am acquiring a few medium term capital growth investment properties in the mean time which I hope to one day use as leverage to purchase it, but the long term planning is definitely still in the beginning stages.
Am well versed in this. Who told you it is not a great strategy? IMO skip the bit where you bog yourself down with "cap growth" dross (also known as 'cash black holes') - go for both cap growth and cashflow... commercial or well located holiday homes that yield 12 - 20%.
I don't have the borrowing capacity for the farm yet, I will need roughly 300k in deposit and a 200k pa joint income. So currently I need my strategy to provide 250k equity and another 40k income, I was planning to increase income outside of property investing but it would be a great bonus. Do you think I would be more successful using holiday properties as a vehicle to get to this goal? I would not have expected to safely invest in any holiday homes for capital growth. My last 2 purchases have been in Logan and provide a slightly positive cash flow.
Hello holidays home are interesting but something I would not be touching. With the generational change occurring more and more people travel overseas. Also what will do with the property in quiet holiday times? There is a suburb called Daylesford in Melbourne 5 years ago it was the "place to be" go to the area now and there are so many homes for sale its not funny. I think people get more bored quickly as well. For me keep it simple and stick to what you know.
With holiday leasing you need to be onsite or have a great PM that arranges lettings, cleaners, gardeners etc.
I have noticed a great increase in people holidaying at home - terrorism and the declining dollar assisting. it's good to select holiday home locations that are not just summer or winter locations but are varied enough to have all year income