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Holiday Let Investments

Discussion in 'General Property Chat' started by dmb1978, 22nd Nov, 2015.

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  1. dmb1978

    dmb1978 Well-Known Member

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  2. Coota9

    Coota9 Well-Known Member Premium Member

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    Port Douglas.PNG

    Plus capital growth..really
     
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  3. dmb1978

    dmb1978 Well-Known Member

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    Despite the crazy growth figures, holiday lets in general??
     
  4. SeafordSunshine

    SeafordSunshine Well-Known Member

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    Vacancy?? Seasonality? Repairs?
     
  5. Kinnon Bell

    Kinnon Bell Finance Broker

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    Potential finance issues.

    Body corp wouldn't be pretty and having it in the letting pool - who's to say yours will be the one rented as opposed to the one a few doors down though you could have it holiday let by a separate company? I would be concerned about extended vacancy periods during the non peak times and if you have it on a normal lease then what would be the return then?
     
  6. moyjos

    moyjos Well-Known Member

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    We bought our current PPOR resort unit approx 10 months before we were ready to move into it.

    While it was in the holiday letting pool and had very little vacancy, it cost us a fortune in fees :(.
    The biggest fee is the cleaning which includes laundry.. If the holiday let has a one night availability, the cleaning fees will kill any profit.
    If a holiday maker breaks a glass, (or plate or cup) management will charge them out at an exorbitant amount. (We have paid up to $10 per item :(. )
    There is very little "maintainence" done. If an appliance doesn't work, they cannot wait for a technician, it just has to be replaced. We paid for a new washing machine when all that was wrong in the end was a stuck sock.
    There will also be a compulsory yearly "spring clean" which is kind of like a full bond clean. In our spring cleans they also replaced all the pillows (and doubled the retail price) in our resort, mattresses are changed after a certain number of nights use as well.

    While we love living here, if we were to move we would have it as a permanent rental rather than back in the holiday pool.
     
    Last edited: 22nd Nov, 2015
  7. Coota9

    Coota9 Well-Known Member Premium Member

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    Holiday units would be in someone's portfolio as a yield play I would have thought and at a 4% nett return it doesn't sit in that bracket for me..
     
  8. dmb1978

    dmb1978 Well-Known Member

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    Thanks all for your input. I always wondered which investors actually bought these properties and how they panned out. No holiday unit for me yet ;)
     
  9. Bayview

    Bayview Well-Known Member

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    Any figure with a yield which is not two figures is a waste of time.