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Is A Holiday House A Good Idea?

Posted by Rebekah Hutton on Wed, Jan 2020

Is A Holiday House A Good Idea?

As the warm weather returns and the family day trips down the coast become more frequent, you may find yourself wondering if buying a holiday house could be right for you.

Buying a house for whatever reason is always a big commitment, so be careful not to decide based on a romanticised notion. There are many elements to consider before diving in, including maintaining the property, finances and loan repayments, property management, tenants, or bookings.

Ideally a holiday house will not only be a lifestyle luxury but also make a good investment. Unfortunately, not all holiday homes eventuate to good investments so it’s important to map out your long-term goals and evaluate the financial sense against your personal circumstances.

Let’s explore some of the advantages and disadvantages of purchasing a holiday home…


  • You always have the option for a getaway and are likely to take advantage of this and escape more often. This can be extremely beneficial to your happiness, stress-levels and family relationships.
  • You have the option to rent out your holiday home at the times that suit you. This can generate additional income and help offset the costs of owning the property. In some popular locations you can charge rental rates that exceed the cost of your mortgage repayments.
  • You have the option to eventually retire to your holiday home in a process that is seamless and easy.
  • If you purchase a home in a high demand area, you are likely to experience significant property appreciation over the long term.



  • You may struggle to occupy your holiday home throughout the cooler months, preventing you from generating the additional income you need.
  • There are many added costs associated with owning an additional property. Rates, taxes and interest on mortgage payments all add up, perhaps making a holiday house a non-viable option.
  • You may get bored of going back to the same holiday destination repetitively, a holiday house is obviously restrictive to a single geographical area. You may start to feel burdened and constrained by the holiday home.
  • Like any investment property, you run the risk of your holiday house declining in value, or not appreciating enough to offset the holding costs.