Going on vacation every once in a while has become a necessity for most of us. Some people even buy a holiday home so they can have a quick weekend getaway from the hustle and bustle of the city while also benefiting from holiday rental earnings when they’re not using it.
It’s nice to have the best of both worlds. Who wouldn’t want to have free holiday accommodation in their favourite place and earn rent? Entering the holiday property market is a dream for many Aussies. However, there are things you need to factor in to make sure there is a good rental return from your holiday home investment.
If you’re looking to invest in a holiday home, we have listed our Top 6 Hotspots on the East Coast.
Located just two hours away from Sydney, Newcastle is a good choice for a holiday rental home because of its scenic views, vibrant culture, historic attractions, and its world-class waves that are perfect for surfing and other active water sports. Newcastle is also the home of the Hunter Valley wineries and the largest salt water lake in Australia which is the Lake Macquarie. A strong rental return, good location, and high occupancy rate should be part of your list when searching for a holiday home. Newcastle can offer all three since it’s close to the city and it’s very accessible by land and air, making it an ideal location for an easy getaway from Sydney.
The Byron Bay Hinterland is an up and coming tourist destination. It has a very laid back vibe and beaches that offer a lot of water activities such as surfing, stand up paddling, and dolphin kayaking. The beach is very accessible, plus there is an airport nearby. The median price of houses here is increasing every year, with a high annual price growth of 18.6%, and a rental yield of 2.6%.
If you live in the Melbourne area, Daylesford is a popular holiday destination that could be worth investing in. Daylesford is notable for its spas, particularly the natural spring mineral spas in Hepburn Springs. There are over 72 mineral springs and over 30 spas and healing centres all over town. What’s great about Daylesford is that it’s pretty close for a quick weekend getaway, yet far enough for a relaxing holiday vacation. There has been annual capital growth of 5.7% over the 12 months to November 2017 and it has a median rent of $340 a week.
History, art, food, and culture are some of the notable characteristics of Ballarat. There are plenty of attractions to visit such as the famous M.A.D.E or Museum of Australian Democracy at Eureka, the gold rush villages, Sovereign Hill and the Art Gallery of Ballarat to name a few. According to realestate.com.au, there’s good annual growth of 5.1% which is increasing every year, and a median rent of $280 a week.
Noosa’s wide array of beaches, riverside areas and hinterland communities makes for a good location for your holiday rental home. It’s relatively near to Brisbane and you can fly directly from Melbourne and Sydney which is another reason why the Sunshine Coast is a hot spot for a vacation. Houses and units are more expensive compared to other locations on the list, but there is a good rental yield of 3.55% with low vacancy rates.
The Gold Coast is one of Australia's iconic holiday vacation spots because of its white sandy beaches, surf-friendly waves, night life, theme parks, and the famous skyline. This is a popular place for retirement because of its affordable and high quality housing which can be difficult to find in other Australian capital cities. There is a strong future population growth, infrastructure is improving, property values are increasing, and the rental yields remain high, which makes the Gold Coast a top choice for your holiday home.
Buying a holiday home in your favourite holiday destination can be a good idea. You can turn it into an investment property when you’re not using it and take advantage of the rental earnings. However, it’s important that you look into the capital growth, rental yield, and the vacancy rate to make sure your holiday home rental doesn't create a financial strain.
You can start the process of investing in your holiday dream home by checking out our low home loan products!