The Benefits of Modular ConstructionMarch 26, 2018
So you’re thinking of listing your property on Air BNB?August 7, 2018
Australians LOVE a holiday and while overseas travel is high on the list for many of us we are also blessed with an abundance of fabulous holiday destinations in our own backyard. For some of us, when we find a piece of paradise on home turf the lure of our own holiday hideaway is strong. Be honest! Have you ever checked out real estate prices at your favourite holiday spot?
Have you ever wondered if a holiday home is a good investment?
Q. What should you consider?
Some positive aspects of owning a holiday home may include:
- Rent-free holidays for you, family or friends any time you like.
- Potential profit from holiday rentals to others.
- Rental income may offset holding costs such as maintenance, loan repayments, management fees, insurance and rates.
- Possible tax advantages.
- Possible capital growth over time.
Some people may buy a holiday home earlier in life with a view to retiring there in the future.
Of course as with any investment it pays to consider the possible pitfalls as well. We certainly know of many cases where clients have made a purchase in the throes of holiday euphoria only to regret it further down the track.
Q. What could possibly go wrong?
Key considerations before proceeding with such a purchase include:
- Value for money. How often will you use it?
- Potential income vs reality.
- Holding costs.
- Capital gains potential.
Our Duplex may be the perfect solution!
Rent out the ground level home under a normal lease arrangement, thus
- securing an income
- increasing the security as your have a neighbour/tenant
- you’re not reliant on the highs and lows on holiday lettings
- on-going costs of loan repayments, rates, insurance etc are offset by a more permanent income
And…. KEEP THE TOP LEVEL FOR YOUR OWN HOLIDAY USE!!
And the other good news?? Our design fits on very small blocks, thus keeping the cost of land purchase at a minimum!!