While owning a holiday home can offer an escape from busy life, are they really worth the time and money?
The idea of owning a holiday home is certainly a glamorous prospect, being able to dart off to your other property that is purely just for relaxation. And while a holiday home can certainly offer a change of lifestyle at your earliest convenience, is it actually worth owning another property that you may only get to visit a few times a year? To provide some reasoning around this, home owner and Airbnb host, Tonia reveals what it's really like to own a holiday home and capitalise on it.
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"It was always the plan to have the holiday home as a financial investment," she reveals. "We don’t have much super, as my husband’s self employed. So that’s why we chose to buy a holiday home - as an investment purpose for down the track and a bit of a security blanket as well, if we ever needed to sell and be in a better position."
With the clear purpose of using the extra property as another source of income, Tonia explains that to capitalise on her property faster, she bought a new, modern house that didn't need any renovating and would be able to welcome guests immediately.
"We bought the land first and then we had a modular house built. So it was already very modern and absolutely new.
"Financially it cost me more than it would to just build a normal house there, but for the long term it was the best solution, in terms of the value of the property as a whole," she explains.
But it seems spending more seems to have paid off, as Tonia reveals that even she and her husband struggle to find time to book in time for their own holiday home.
"We love having the holiday home there to escape to, but we're never there enough!," she laughs. "It’s now at the point where if we want to reserve it for ourselves, we have to block it out weeks in advance!
"Currently it’s booked out from now until the beginning of January, most of the summer. The house is booked out basically every weekend over six months of the year," she says.
But when asked if that implicates the ability to enjoy her coastal holiday lifestyle, she'd rather the business. "The house is still quite new, so the longer it’s on the site and available, the more exposure it gets and the more customers we get, too," she explains.
And maintenance doesn't seem too much of a hindrence either, as Tonia reveals, "There isn't much maintenance as such for us, because it’s still such a brand new home.
"You’ve got to remember that people aren’t living there permanently, so there’s not as much wear and tear as if normal tenants were in there," she adds.
However, while Tonia's holiday home may be working for her an investment, she warns others from doing the same. "If you buy right, it's a very reliable source of income. But holiday homes are not reliable. You can’t know that you’re going to be booked out for however many weeks in a year.
"It can also be difficult with banks as most won’t lend on the income that you get. They don't take the flexibility into account because you don’t have contract in place, nothings’ guaranteed.
"It’s great if you’ve got the income, that’s ok, but if you 100 per cent need to have the income, then I wouldn’t recommend it under those circumstances," she explains.
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