What to KNOW before investing in a holiday home

Dreaming of a sea or tree change? Here’s what you must know

IT’S GAINING IN POPULARITY Research by ING Australia shows the recent local travel boom has steered investors to holiday hot spots, with 25% of respondents wanting to take advantage of the growing local holiday market and 28% buying away from urban areas so they have a vacation or second home.

DON’T FORGET THE ONGOING COSTS That cute beach shack might seem like a bargain to snap up, but remember to take ongoing expenses such as insurance, council rates, utilities and maintenance (those lawns won’t mow themselves!) into account when you’re considering the overall costs.

RENTING IT OUT Want to generate a good rental income? It might mean you will have to forfeit spending Christmas or Easter holidays at your holiday home, as these are high-demand periods. If you are willing and able to holiday there during the off-season, then the balance could work well.