If you’re thinking of buying a holiday home this year, then congratulations are in order. You have your life under control and your financial situation is stable enough to allow you to make this grand step in life. Buying a holiday home not only allows you to escape the hectic modern lifestyle at your own leisure, but it can also be a great source of additional income in the months when you’re not there.
With so many amazing opportunities scattered across the breathtaking Land Down Under, now is the time to get to work and find your dream holiday residence. Today, we’re giving you the key tips that will help you make the right investment. Here’s what you should do.
Start with thorough market research
Firstly, understand that this is not a quick process. Finding your ideal holiday home takes time and diligent research, because it’s not just about the aesthetic appeal of the property, it’s about a myriad of other factors that could make or break your investment. You could, of course, work with a local buyer’s agent to get professional guidance and assistance, and to find the best properties on the market.
If you’re not up for spending money on a buyer’s agent, you’ll have to research the properties, markets, neighbourhoods, and climates yourself. Keep in mind that you need to have the grand picture in mind and research the long-term development plans of certain areas. If you don’t, you might end up buying a secluded vacation property that’s going to get surrounded by other vacationers in a few years’ time.
Calculate the immediate and long-term investments
Buying a holiday home, especially if you plan to rent it when you’re not there, is not a one-off investment. In order to plan your finances and your financing, you need to get a comprehensive overview of your entire investment – that means what you need to pay right now, and what you can expect to pay in the years to come. Weigh the pros against the cons of buying a cheaper beachfront property that you’ll need to invest thousands of dollars in to get it up to code.
Choose a sensible financing option
One of the most important considerations is how best to secure the capital for such a large investment. The key is, of course, to do your research and find the lenders that offer favourable terms and conditions, and can set you up with a reasonable repayment plan for the next few years.
In Australia, you can find services like Rateseeker that let you research and compare different lenders and their financing options so that you can find the right plan for your current needs, budget, financial situation, and long-term goals. Be sure to use a platform that will guide you through the process of getting a loan and that can tailor the loan plan for your unique situation.
Insuring your new property and its assets
A property that you don’t live in all year round must have proper insurance. This should be one of your top priorities when procuring a holiday home, because you want to insure your investment against a variety of hazards and risks. Be sure to compare home insurers, their prices and plans, to find comprehensive coverage for your property and all its assets and contents against third-party and environmental damage.
Consider a property near the water
If you’re looking to buy a waterfront property, which is probably the case if you’re buying a holiday home in Australia, then you need to take a careful and calculated approach. Waterfront properties are real gems and they’re the best vacation spots, but it’s important to inspect them thoroughly and know the local laws and regulations.
Make sure that the property is up to code and that there is minimal risk of flooding, erosion, or water damage. Scrutinize the local laws to know what you’re entitled to, if you can build a private boat dock, and more.
Buying a holiday home is a grand step, so it’s important to make the right decisions. Use these tips to find your ideal holiday property in 2021.