If 2020 taught us anything, it’s that life can change in an instant. No one could have predicted the events of last year and how our world would fundamentally change. We are so lucky here in Perth, Western Australia. Not only have we survived relatively unscathed from a global pandemic, but our economy is showing extraordinary resilience, especially within the real estate market.
House prices are finally starting to rise, with sales growing in strength, resulting in a competitive rental market.
With travel restrictions still in place, more and more West Australians are looking within the state for their holidays, with private self-catering homes proving the first choice for travel accommodation. Holiday homes boast comfort, flexibility, space, and a home-from-home environment. They are popular with families don’t want to be cooped up in a hotel room for a week.
There has never been a better time to invest in a holiday home. Let’s look at why a holiday home is a good investment and why now is a good time to buy.
Return on investment (ROI)
Holiday homes provide you with an opportunity to get away from your busy working life and offer a legitimate second interest stream. With the possibility of around 30 weeks occupancy a year, a holiday rental property can produce a healthy return on investment.
Renting your home out to holiday guests can also help offset expenses while attracting some tax relief.
The ability to have complete control over who gets to use your holiday home allows you the freedom to earn as much or as little income as you like. Rent it out when it suits you, and when it’s not booked, you can use it for family weekend breaks or a week away.
Research suggests holiday home rentals contribute to the local economy. Statistics show travellers staying in holiday rental accommodation tend to spend more in the local community than hotel dwellers. This means that as an owner, you’re giving something back to your community and the local economy.
Our regional areas, such as Dunsborough, Margaret River, and Mandurah in WA’s south and Quinn’s Rock in the north, offer outstanding natural beauty and affordable real estate prices.
If you are worried about the time involved in managing an investment holiday home, there are professional managers and holiday home agencies who can manage it for you. They’ll advise you on marketing, organise visitor changeovers, cleaning, and any maintenance or upkeep.
Whether it’s a house by the sea, an inner-city urban apartment, or a remote bush getaway, investing in a holiday home can provide a sense of fulfilment and joy. With gorgeous real estate options available in Dunsborough and Margaret River and stunning holiday homes on the market in Mandurah and Quinn’s Rock, now is the time to grab a bargain.
With interest rates being at an all-time low, a holiday home might be both a shrewd financial and lifestyle investment.