Should you invest in holiday accommodation?
It’s that time again. Swimsuits are being dug out from the deepest recesses of our closets, most of us have set our clocks forward and the annual Trans-Tasman argument of thongs vs jandals has heated up again. That’s right: summer is here.
If you’re thinking about taking advantage of the warmer weather and getting away for a break, you’re probably not alone. Recent tourism research by Austrade has shown seven per cent growth in domestic overnight trips in Australia between 2014 and 2015, while New Zealand saw almost 4 per cent growth over the same period. With that amount of travel happening, accommodation providers must be reaping huge rewards – could it be time for you to look into investing in holiday accommodation?
In Australia, it’s a fantastic time to become a small business owner.
Feel the heat
Travel in and around Australia and New Zealand, with both domestic and international visitors, is clearly hot right now. Investing in holiday accommodation is a great way to harvest some of those tourist dollars for yourself. Whether it’s a simple holiday home (which you can also use yourself) or a larger business operation, your real estate agent can direct you towards great businesses and suitable houses for sale on either side of the Tasman.
There’s clearly money to be made in the industry, with figures from Hotel.com’s Hotel Price Index 2015 showing the median price for a room is creeping up towards $150 per night in both Australia and New Zealand. There’s room on either side of that average for whatever situation you have in mind.
Getting started is easier than ever
If you’re thinking about taking the plunge into more than just a casual accommodation business, both countries have their own government initiatives for helping new small business owners get established. In New Zealand, the government offers Capability Development Vouchers to businesses to use as partial payment towards the cost of capability development and training, which can help with business planning, sustainability and marketing, among other things.
In Australia, it’s a fantastic time to become a small business owner, with the federal government’s Jobs and Small Business package, announced in the 2015 Budget, offering extra new incentives. Any eligible assets for your small business up to a $20,000 value can now be immediately depreciated, with no limit on the number of individual assets claimed, easing some of the financial difficulties of getting a business off the ground.
People love taking holidays, now seemingly more than ever. Talk to your real estate agent about holiday accommodation investment, and seize the season.