Could you be relaxing in your new holiday home this Christmas break?
MoneySmart data shows that 48 per cent of Australians are saving for a home and 47 per cent are saving for a holiday. What if you could do both?
Owning your holiday home has a long list of potential benefits, not to mention the fact that you’ll have a solid excuse to take a long weekend every now and then to ‘check on’ your property. Plus, the fact is that if you already own a property and have built up a little equity, buying a holiday home could be a fairly easy process.
Here’s how, and why buying your own little piece of paradise is a distinct possibility (and a good idea) this Christmas break.
Australians spend big on holidays
48 per cent of Australians are saving for a home and 47 per cent are saving for a holiday.
We’re a leisure-loving people. Every Christmas break, a mass exodus from cities and centres occurs as we migrate across the country to beach-side towns and rural hideaways for a little timeout after a hard year at work. We spend a fair bit during our time away as well.
MoneySmart data suggests on average Australians blow over $2,700 per year on our little holidays, a great deal of which probably goes on the infamous Christmas break. Could we put this money to better use? Definitely.
A holiday home will provide a base to head off to every year. While you’re not using the property it can generate income through short term rental. Plus if you buy in the right area it’s likely that your investment will increase in value along with most other Australian property.
Put the money spent on accommodation every year towards saving for your own property, use equity in your existing property and you could be the proud owner of a holiday home before you know it.
Leverage your way into paradise
On average Australians have over $350,000 worth of equity in their property, or properties.
Australian Bureau of Statistics data shows that, on average, Australians have over $350,000 worth of equity in their properties. With that amount, you could easily place a deposit on the holiday home of your choice and work towards being the proud owner of your yearly holiday destination.
If you think that this is a financially difficult proposal you may be right, but there are ways to work around this. You could rent your property out while you’re not using it allowing you to supplement your mortgage repayments with rental income.
Then, during summer when you are using the property, simply put the money you would have used for accommodation towards your mortgage. As you can see, with a little bit of strategic thinking average Australians can own a holiday home – not just the mega-rich.
Where should you buy?
Illawarra emerged as one of the nation’s best performing regions.
The September edition of CoreLogic’s regional report reveals promising signs for those looking to buy outside of the capital cities. Illawarra emerged as one of the nation’s best performing regions, experiencing value gains of 14.3 per cent for the year ending September.
Other areas around the country such as the Sunshine Coast experienced similarly impressive value gains. What this means is that it’s not necessary to just search for value gains or the ideal spot for a holiday.
Idyllic regions such as Illawarra can provide both, ensuring you’ve got a beautiful spot to hideaway in this Christmas break and a solid investment that is steadily increasing in value.
If you’re interested in owning a slice of paradise to steal away to this Christmas break, get in touch with a local real estate agent. With a little help and some good advice, you can pass your beach house off as a ‘property investment’ to all who ask!