HI All, Anyone had any experience or insight about this area for setting up a Holiday house plus AirBnb sort of property? MI
Yeah not much there except the mossies!! Seaspray would be a better bet or Loch Sport but growth population wise has been slow
@MelbInvester Have you owned this style of investment before? If not (and apart from this location), here are some reasons why you may think twice about it: High outgoings and management fees. Short term or holiday rentals often have management fees of around 15%+ and maintenance can be very high, resulting in a much lower income yield than expected. No variety. The romantic notion of a holiday home or apartment may wear off after you’ve been on holidays to the same place year after year. However, because of expense of owning the holiday home (or apartment), you’ll probably feel uncomfortable about going on holidays anywhere else. Seasonality. Vacancy rates during off season times can be extremely high and unacceptable to most property investors. Wear and tear. This tends to be higher with short term rentals. Furnishings and items need to be replaced more often. The chance of a Black Swan Event. Unexpected situations like economic/tourism downturns, cyclones, beach erosion and oil spills (in coastal areas) can negatively impact the investment. Volatile sector. Holiday homes are often the first assets offloaded by investors during an economic downturn.
