Lo­ca­tion is key in hol­i­day home choice

Pilbara News - - Property - Hay­den Groves Hay­den Groves is the pres­i­dent of the Real Es­tate In­sti­tute of West­ern Aus­tralia.

There’s noth­ing bet­ter than get­ting away over the fes­tive sea­son to one of the many pic­turesque hol­i­day des­ti­na­tions WA has to of­fer.

Whether you pre­fer to head north or south, a change of scenery can get you think­ing about in­vest­ing in a hol­i­day house of your own.

It’s im­por­tant to de­ter­mine whether you want to utilise the prop­erty as a hol­i­day home, as an in­vest­ment, or a com­bi­na­tion of both.

The most ideal sit­u­a­tion is to keep the prop­erty avail­able for when you want to use it and rent it out to other hol­i­day-mak­ers the rest of the time.

This en­sures reg­u­lar in­come to help pay the mort­gage but also al­lows you to en­joy the prop­erty and sur­rounds. Avoid mak­ing any emo­tional de­ci­sions.

This is crit­i­cal if you’re re­ly­ing on the prop­erty for in­come.

As with any prop­erty pur­chase, en­sure you re­search prices in the area and real­is­ti­cally as­sess your ex­ist­ing fi­nan­cial com­mit­ments.

The lo­ca­tion of your hol­i­day home is par­tic­u­larly im­por­tant if it’s an in­vest­ment as this will have an impact on what re­turn you’ll get from hol­i­day let­ting.

Look in ar­eas that at­tract a lot of hol­i­day-mak­ers be­cause of local at­trac­tions or prox­im­ity to metro ar­eas.

Al­ter­na­tively, there is the op­tion to pur­chase a unit within a re­sort de­vel­op­ment.

Th­ese prop­er­ties are leased back to the man­ager of the re­sort and of­fered as hol­i­day ac­com­mo­da­tion. As the owner, you can usu­ally make use of the prop­erty when it suits you.

Be sure to check the fine print with th­ese pur­chases be­cause you may ac­quire a share of a man­aged in­vest­ment scheme, which can in­clude a stake in the to­tal in­come of the re­sort as well as ex­penses in­curred by the de­vel­op­ment.

If you can’t find your dream hol­i­day house, it could be worth buy­ing a block of land.

Se­cur­ing a great block gives you the flex­i­bil­ity to de­sign and build the house you want.

Hav­ing items like a bar­be­cue, tele­vi­sion and laun­dry fa­cil­i­ties will add to the ap­peal.

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