Holiday Homes
- 6 days ago
- 3 min read
Dream Escape or a Decision Worth Rethinking?
By Mark Daniels, Lifestyle & Property Feature
When most people think about investing, their mind goes straight to shares, ETFs, or w
hatever the market’s doing that week. But property, especially holiday homes, can be a genuine alternative for long‑term returns. Buying a holiday home sounds great on paper, a dream many of us have — sun, space, and a spot that’s yours whenever you need to escape.
But the reality? It’s a mix of dream moments, surprise bills, and a few “wait, no one mentioned that” lessons along the way.
This guide isn’t about convincing you for or against buying one, it’s just the honest stuff people wish they knew before they jump in. No pressure, no sales pitch, just the real picture so you can decide what makes sense for you (and your bank account).
8 Good Reasons to Buy a Holiday Home
1. It’s the rare investment you can literally ‘live in’
Sure, shares are great—but you can’t spend Easter weekend inside them. A holiday home doubles as both an asset and a getaway spot. Use it when you want, rent it when you don’t. Easy.
2. You can buy in a future retirement hotspot
Many holiday towns are cheaper than the big cities. So you can buy near the beach, let renters pay the mortgage, and one day retire into your own personal postcard.
3. You probably already know the area
Australians are creatures of habit, we love going back to the same holiday spot. Great pies. Great beaches. No surprises. And when you know a location well, you understand value better than most investors including good and bad streets.
4. Holiday rentals can be surprisingly lucrative
We prioritize your best interests, ensuring you fully understand all aspects of your financing options for peace of mind.
5. It can be your future retirement base
Buy now and lock in at today’s prices. Move in 10 years from now. Simple maths. (Well… simple-ish.)
6. It doesn’t need to be shiny and new
People don’t choose holiday homes for marble countertops—they choose them for beaches, cafes, and sunsets.
7. You get more for your money
In Sydney, $900k might buy you a two‑bed unit. In many holiday zones, that same money gets you an entire house—no strata fees, no cranky strata committee.
8. Holiday memories are priceless
Even if the capital gain ends up modest, the family memories aren’t. Beach cricket, burnt snags, dad jokes, the whole nostalgic Australian dream.
⚠️ But Wait—Here Are the Serious Bits
Before you pack the car and head straight to the nearest coastal auction, here are some things to be aware of:
1. Don’t buy during peak holiday season
Emotions are high, prices are higher, and you may forget to negotiate because the ocean breeze feels too magical.
2. Clarify your objectives
Is this purely for rental income? Or one day your retirement home? Your answer affects what (and where) you buy.
3. Not all holiday homes grow in value evenly
They have mood swings—peaks and troughs that can be steeper than city markets.
4. These markets react strongly to economic shifts
In downturns, holiday homes are often the first assets people sell. A holiday home doesn't really matter if you cant afford the rego.
5. Tax can get tricky
Living in it, renting it, claiming deductions—speak to an accountant before making any moves and understand what it will mean for you and the taxman.
6. Land tax and ownership structures matter
Again your pocket protector calculator happy accountant will need to give you advice. Land and capital gain tax can get ugly and you need to know what you may not know.
7. Holidaying in the same place forever can get old
Even paradise feels repetitive after visit #37. Its fun with the family
but nothing last forever.
8. Decide upfront what would trigger you to sell
Set out in the beginning what are the triggers would be for you to sell. Yes sounds negative but walking into any property or investment with eyes wide open helps prevent emotional decision‑making later.
