If you have some savings stashed away, buying a second property as a holiday home is an excellent way to spend your money. Not only will it give you a fantastic place to while away occasional weekends and holidays, but you can also earn some income back if you decide to rent it out. The big question is, what makes the perfect holiday home. We’re going to go through everything you need to know – so let’s get started right away!

 

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It’s cheaper than you think

 

You might believe that buying a second property is an impossible ask. But if you are already a homeowner and can make a sound business proposition for renting out a holiday house, many banks will be willing to give you a shot. However, bear in mind that you will still need significant savings behind you for deposit purposes, and the more you pay, the better mortgage deal you can expect.

 

Location is critical

 

Of course, there is little point in buying a holiday home in an unpopular area. A lot of research is required before taking the plunge, and you will need to find out about the ins and outs of the location to ensure it is suitable for a holiday home. Look at tourism rates, activities, and facilities, as well as transport routes and proximity to services like airports. A quick look over at www.nclp.com.au shows you there can be a vast difference in price when it comes to location. Beachfront properties tend to be on the expensive side, while the further inland you go, the cheaper properties get. That said, it is possible to find a happy medium – the perfect point between price and location.

 

The maintenance issue

 

Don’t forget, if you are renting out your holiday home you will need to make sure it is well maintained., It will involve cleaning up after every guest leaves, in time for the new ones to arrive. If the property is located far away, you might need to find a property management company to look after business on your behalf.

 

The cost of furnishing

 

Another cost to consider is the furnishing – and it can rise to a significant amount. While you won’t have to deck out the holiday property as nicely as your own home, you will still need to invest in quality to ensure it appeals to potential guests. Run down properties with shabby and dirty furniture will soon result in disappointing reviews on sites like tripadvisor.com.au. And that means fewer guests are making bookings and potential problems in paying your mortgage.

 

Choose your niche
Finally, consider establishing a target market for your holiday home. Do you want to appeal to the luxury traveler? Or perhaps you want to attract the more adventurous types who enjoy outdoor activities? You could even take the budget travel route, and provide very basic accommodation. Ultimately, you can’t appeal to all these groups at the same time, so consider the sort of person who travels to that location and create something based entirely on their needs.