• (02) 9194 4411
    • 3 Pillars – Pet Friendly – 4 Mins Walk to Beach
    • Adrift – Pet-friendly – 5 min Walk to Bay – Rustic Charm
    • Alkira – Pet Friendly – 4 Mins Walk to Beach
    • Aloha – Short Drive to Berry & The Beach – Fireplace and Firepit
    • Amaroo – Pet Friendly – 2 Mins Walk to Beach – Outdoor Fireplace
    • Anacapri – Pet Friendly – Opposite Beach – Fireplace
    • Anglesey – Pet Friendly with Pool & Tennis Court – 4 Mins Walk to Beach
    • Annabel’s Place – Pet Friendly with Fireplace
    • Aqua Beachfront – Pet Friendly – 2 Mins Walk to Beach
    • Arklow – Pet Friendly with Ocean Views
    • Ayana – Pet Friendly – Directly Opposite Beach – Fireplace
    • Azure Absolute Beachfront – Pet Friendly with Stunning Views
    • Baci Al Mare – Pet Friendly – 3 Mins Walk to Beach
    • Bahia – Pet-Friendly – 10 Min Walk to Bay
    • Bailey’s Retreat – Pet Friendly Waterfront – 10 Mins Walk to Beach – Fireplace and Firepit
    • Banksia – Stunning New Absolute Beachfront
    • Bathers – Pet Friendly – 4 Mins Walk to Beach
    • Bay Blu – Pet Friendly – Waterfront
    • Bay Gem – Pet Friendly with Spa
    • Bayview – Absolute Waterfront with Jetty – 5 Mins to Hyams Beach
    • Beach Central – Pet Friendly – 2 Mins Walk to Beach
    • Beach Please – Pet Friendly – 3 Mins Walk to Beach
    • Beachcomber @ Currarong – Pet Friendly – 5 Mins Walk to Currarong Rockpools
    • Beachway – Pet Friendly – 2 Mins Walk to Beach
    • Beachwood – Firepit – Pet Friendly – 2 Mins Walk to the Beach
    • Blue Wren – Pet Friendly – 5 Mins Drive to Beach
    • Bluetongue: Pet Friendly with Spa – 4 Mins to Beach
    • Bluewater Jervis Bay – Pet Friendly with Spa
    • Boho – Pet Friendly – 1 Min Walk to Beach
    • Bonnie’s Bliss – 10 Mins Walk to Beach
    • Bower’s Nest – Pet Friendly – 2 Mins Walk to Beach
    • Breathe – Pet Friendly – 2 Mins Walk to Beach
    • Burra Beachy – Pet Friendly – 5 Mins Walk to Beach
    • Burra Days – Pet Friendly – 5 mins Walk to the Beach
    • Buwadi – Pet Friendly – 3 Mins Walk to Beach
    • Callala Beach Walk – Beachfront with Fireplace
    • Callala Calm – Pet Friendly – 5 Mins Walk to Beach
    • Callala Cottage – 4 Mins Walk to Beach
    • Callala Dreams – 4 Mins Walk to Beach
    • Callala Sunrise – Pet Friendly – 5 Mins Walk to Beach
    • Callie’s Retreat – Pet Friendly -3 Min Walk to Beach
    • Calming Waters – Pet Friendly – Community Pool
    • Calypso – 4 Mins Walk to Beach – Community Pool
    • Camellia – Pet Friendly – 3 Min Walk to Centre of Berry
    • Carramar – Fireplace – Absolute Waterfront
    • Clara’s Coastal Cottage – Pet Friendly – 1 Min Walk to Beach
    • Clearwater – Absolute Beachfront – Walk onto the beach from the garden!
    • Coastal Capers – Pet Friendly – 10 Mins Walk to Beach
    • Coastal Oasis – Pet Friendly – 6 Mins Walk to Beach
    • Coastal Palms – Pet Friendly – 3 Mins Walk to Beach
    • Coastaway – Pet Friendly – 3 Min Walk to Beach
    • Coca Callala – Pet Friendly – 5 Mins Walk to Beach
    • Come Wot Mey – Pet Friendly – 4 Mins Walk to Beach
    • Cork Valley Farm – Escape to 35 Acres in the Country
    • Crystal Bay – Pet Friendly – 3 Mins Walk to Beach
    • Cunjevoi – Pet Friendly – 5 Mins Walk to Beach
    • Curley’s Sunsets – Pet Friendly – 10 Mins Walk to Beach
    • Curleys Outlook – Pet Friendly Waterfront
    • Da Roost – Family Luxury with Sweeping Coastal Views
    • Delamere – Pet Friendly – 5 Mins Walk to Beach
    • Eagles Point – Water Views & Spa – Pet Friendly
    • East Side Sands – Pet Friendly – 5 Mins Walk to Beach
    • Eclipse – Absolute Beachfront with Stunning Views
    • Enchante` – Pet Friendly – Absolute Waterfront – Fireplace
    • Endless Summer – Absolute Beachfront – Pet Friendly
    • Fintry Beach House – Pet Friendly – 10 Mins Walk to Beach
    • Fishery Road Cottage – Newly Renovated – Pet Friendly – 2 Mins Walk to Beach
    • Fleur de Chalet – Pet Friendly – 10 Mins Walk to Beach
    • Ginger’s – Pet Friendly – 4 Min Walk to Beach
    • Golden Sands – Pet Friendly – 2 Mins Walk to Beach
    • Grey Gables – Pet Friendly with Pool & Spa
    • Gumnut – Pet Friendly – 8 Mins Walk to Beach
    • Hanalei – Pet Friendly – Directly Opposite Waterfront
    • Havenwood – Pet Friendly – Spa & Community Pool
    • Hayes @ Jervis Bay – Multi Award Winner – 4 Mins to Beach
    • Hidden Orchard – Pet Friendly – 4 Mins Walk to Beach
    • HighTide – Pet Friendly Beachfront
    • Husky Sands – Pet Friendly – 5 Mins Walk to Beach
    • Idle Hours – Pet Friendly – 5 Mins Walk to Beach
    • Illaroo – Absolute Beachfront with Spa
    • Indigo – Pet Friendly – 7 Mins Walk to Beach
    • Innisfree – Pet Friendly – 2 Mins to Beach
    • Island Retreat – Pet Friendly with Swimming Pool
    • Jack’s Culburra – Absolute Waterfront with Fireplace
    • Jervis Bay Beach Shack – Pet Friendly – 1 Min Walk to Beach
    • Just Beachy – Pet Friendly – 4 Mins Walk to Beach
    • Karelda – Pet Friendly – Absolute Waterfront – Stunning Views
    • Keppel – Pet Friendly – 4 Mins Walk to Beach
    • Kingfisher – Pet-Friendly – 10 Min Walk to Beach
    • Kirkland – Pet Friendly – 5 Mins Walk to Beach
    • La Belle Vie – 1 Min Walk to Basin Walking Track
    • La Vista – Water Views & Mountain Vistas
    • Le Shack – Pet Friendly – 3 Mins Walk to Bay – Wheelchair Access
    • LegaSea Lodge – Pet Friendly Beachfront with Plunge Pool
    • Lemon Drop – Pet Friendly – 4 Mins Walk to Beach
    • Little Bimbi – Pet Friendly Waterfront
    • Magnolia Cottage – Pet Friendly – 5 Mins Drive to Hyams Beach
    • Malda’s Retreat – Pet Friendly Absolute Beachfront with Spa
    • Meeseeks – Pet Friendly – 2 Mins Walk to Beach
    • Middle Sea – Pet Friendly – 5 Mins Walk to Beach
    • Mirigaan – Pet Friendly – 8 Min Walk to Beach
    • Monterey Heights – Pet Friendly – Ocean Views
    • Morton Sonas – Pet Friendly – 5 Mins Walk to Beach
    • Nalu – Pet Friendly – 1 Min Walk to Beach
    • Nautilus – Pet Friendly – 5 Mins Walk to Bay
    • Neptune – Pet Friendly Absolute Beachfront with Stunning Views
    • Nest – Pet Friendly – 2 Min Walk to Beach
    • Ocean Dunes – Absolute Beachfront with Fireplace
    • Oceanside – Pet Friendly Absolute Beachfront
    • On The Lake – Pet Friendly Waterfront
    • Ours & Yours @ Culburra – 5 Mins Walk to Beach
    • Pagoda @ Culburra – Pet Friendly – Short Walk to Beach & Bay
    • Palms – Pet Friendly – 2 Mins to Beach
    • Panorama @ The Lake – Pet Friendly
    • Parkview – Pet Friendly – 5 Mins Walk to Beach
    • Pax & Coral – Pet Friendly with Amazing Spa
    • Peppertree Jervis Bay – Pet Friendly Beachfront with Sea Views
    • Periwinkle – Pet Friendly – 2 Mins Walk to Beach
    • Pipers Spot – Pet Friendly with Swimming Pool
    • Reflections – Pet Friendly Waterfront
    • Replenish – Pet Friendly with Spa
    • Rest – Pet Friendly with Outdoor Bath – 3 Mins Walk to Beach
    • Rockpool – Pet Friendly – 1 Min Walk to Beach
    • Rockwall – Pet-Friendly – Fire Pit
    • Roskell Retreat – Pet Friendly – 5 Mins Walk to Beach
    • Salt & Pepper – Pet Friendly – 5 Mins Drive to Hyams Beach
    • Salt Water Breeze – Pet Friendly with Spa
    • Saltbush Cottage – Pet Friendly – 1 Min Walk to Beach
    • Salty Shores Jervis Bay – 3 Mins to Beach
    • Sanctuary Blue – Pet Friendly – 5 Mins to Hyams Beach
    • Sandy Feet Retreat – Pet Friendly – 1 Min Walk to Beach
    • Sandy Paws – Pet Friendly – 4 Mins Walk to Beach
    • Sandy Rays – 5 Mins Walk to Beach
    • Saoire – Pet Friendly – 5 Mins Walk to Beach
    • Sapphire Sands – Pet Friendly – Community Pool
    • Scribbly Gum – Pet Friendly – 15 Mins Drive to Hyams Beach
    • Sea and Sun – Pet Friendly – 4 Mins to Beach
    • Sea La Vie – Pet Friendly with Fireplace and Swimming Pool & Spa
    • Seagrass – Pet Friendly – 10 Mins Walk to Beach
    • Seahaven – Pet Friendly with Ocean Views- 2 Mins to Beach
    • Seas the Day – Pet Friendly – Ocean Views
    • Seaview – Pet Friendly with Stunning Views – 1 Min to Beach
    • Serene – Pet Friendly with Swimming Pool
    • Shiloh Shores – Pet Friendly with Fire Pit – 5 Mins to Beach
    • Shores – Pet-Friendly – 1 Min Walk to Beach
    • Sirius Retreat – Pet Friendly – 3 Mins Walk to St. George Basin
    • Sole e Mare – Pet Friendly – Community Pool
    • Solymar – Adjacent to Beach – Pet Friendly
    • Spinnaker – Family Getaway – 2mins Walk to Beach
    • Spoondrift – Pet Friendly – 5 Mins Walk to Beach
    • Summer Salt – Fireplace – 3 Mins Walk to Beach
    • Summer Waters – Swimming Pool & Community Pool
    • Summerlea – Pet Friendly with Swimming Pool
    • Sunbaker – Pet Friendly Awards Finalist – 4 Mins Walk to Culburra Beach
    • Sunfish – Pet Friendly – 4 Mins Walk to Beach
    • Sunsets – Pet Friendly – 10 Mins Walk to Beach
    • Surfside – Waterfront with Stunning Views
    • Surfspray – Pet Friendly – Absolute Beachfront
    • Swell – Pet Friendly with Swimming Pool – 2 Mins Walk to Beach
    • Tangerine – Pet Friendly – 3 Mins Walk to Beach
    • Thalassa – Pet Friendly – 2 Mins Walk to Beach
    • The Anchor – Pet Friendly – 5 Mins Walk to Beach
    • The Cabin – Waterfront with Fireplace – 5 mins to the Bay
    • The Coast Beach – Pet Friendly – 2 Mins Walk to Bay
    • The Crescent @ Currarong – Pet Friendly Beachfront
    • The Dairy @ Cavan, Kangaroo Valley, Stunning Views
    • The Deckhouse – Pet Friendly – 2 Mins to Beach
    • The Palings at Culburra – Pet Friendly Masterpiece
    • The Palms Villa – Pet Friendly – 4 Mins to Beach
    • The Relax Shack – Pet Friendly – 8 Mins Walk to Beach
    • The Treehouse – Pet Friendly – 2 Mins Walk to Beach
    • The View @ Culburra – 1 Min Walk to Beach
    • The Villa @ Culburra – Pet Friendly – 4 Mins Walk to Beach
    • The Waterfront House – Pet Friendly – Absolute Waterfront
    • Tilly’s Retreat – Pet Friendly – 3 Min Walk to Beach
    • Time and Tide – Pet Friendly – 1 Min Walk to Beach
    • Tranquil Surf Oasis – Pet Friendly -2 Mins Walk to Lake
    • Tranquility – Pet Friendly with Fire Pit – 5 Mins Walk to Basin
    • Unwind – Pet Friendly – 1 Min Walk to Beach
    • Villa Franco – Pet Friendly – 8 Mins Walk to Beach
    • Villa Mare @ Culburra – 4 Mins Walk to Beach
    • Villa Zelma – Pet Friendly – 4 Min Walk to Beach
    • Wagtails – Pet Friendly – 5 Mins Walk to Beach
    • Wander Inn – Pet Friendly – 15 Mins Walk to Jervis Bay
    • Watermans – Absolute Beachfront – Pet Friendly
    • Watts Haus – Pet Friendly – 5 Mins Walk to Beach
    • Whitewash – Pet Friendly – 5 Mins Walk to Beach
    • Wildwood – Pet Friendly – 5 Mins to Beach
    • WindanSea Cottage – Pet Friendly – Ocean Glimpses
    • Woollamia Weekender – Pet Friendly – Plunge Pool
    • Yelo @ Culburra – Pet Friendly – 1 Min Walk to Beach
The Pros and Cons of Starting a Holiday Rental Property

The Pros and Cons of Starting a Holiday Rental Property

 

Buying property for investment purposes is popular the world over. But most investors choose the option of long-term tenanted rentals rather than go down the path of owning a holiday rental property. Often they feel afraid to buy in an area that isn't close to home and which they don't know well. On the flip side they can have a property that they can enjoy for holidays and make great returns. Let's look at the pros and cons in more detail...

Pros

Saving money on Holidays

Holiday homeowners can save thousands of dollars per year by using their own homes for weekends away as well as longer breaks. There is no need to pay for expensive flights as the home is likely to be within driving distance (particularly convenient if you have a young family or dog). Other than petrol costs and maybe a post-stay clean (if you don't want to clean it yourself), there are few costs involved.

Getting away more often

Having a holiday home a few hours' drive away means that you can hop in the car and enjoy a weekend away at the drop of a hat. What would ordinarily cost a great deal of money to rent can now be enjoyed for free (presuming your rental income covers your loan payments). Naturally, some holiday homeowners choose to buy properties far from home, but these are in the minority.

Investment (capital gains)

Holiday homes can be as good an investment in terms of capital gains as any other property. A carefully selected holiday home in the correct location can bring substantial gains over time.

Income

The biggest "pro" with a holiday home is arguably the amount of rental income that can be generated. If the property is run and marketed effectively the rental returns can be astronomical compared to a long-term rental (and you get to enjoy it yourself too!)

An Owner Says...
"On the current long-term rental market, our property would rent for $300 a week. Our rental income running it as a holiday home is more than five times that amount!"

Share with others

Not only does your level of coolness increase exponentially when you tell family and friends that you have a holiday home it's also great to be able to share your home with them. You'll also be surprised at how many of them are happy to pay to stay there (with a little friends' discount of course!)

Charity

Having a holiday home also helps you do something great for the world. The majority of holiday homes have spare capacity at some stage during the year, and a great thing to do is to donate any spare capacity you may have to a charity to provide free accommodation.

"At our holiday home we have some capacity over the colder winter months so we donate this capacity to The Otis Foundation. This allows women being treated for breast cancer to stay at the house for free in order to have some time to recuperate and relax with their families after a very difficult experience."

Cons

Groundhog Day (same place each time)

If you buy a holiday home you'd better make sure that you love the house and the area that it's in as you’ll be spending a lot of time there! If you don't have a passion for it or you are someone who craves constant variety of locations, a holiday home may not be right for you.
An owner says...
"We have owned our holiday home for 6 years and we've never lost the love for the house or location. In fact, as time has gone by we've become increasingly more attached to it as we make many lifelong family memories of our time spent there."

Expense of borrowing

Unless you’re significantly financially endowed it’s likely that you may need to borrow money to buy your property. The amount you need to borrow needs to be carefully weighed up against the potential rental income or you could find yourself in financial difficulties. It’s also important to remember that holiday homes can be highly seasonal and revenue may peak in particular times of the year and be non-existent in others. However, you still have to pay for loans every month so it’s important to plan for the “peaks and troughs” of income.
An owner says…
"Our holiday home is located at the beach and as a result we make 70% of our income in the summer months. In the early days, we had to be careful to set aside some of the summer income to cover home loan payments in the quieter winter months."

Expense of setting up

In contrast to long-term rental properties which may not require furnishing, holiday rental properties require a significant upfront investment in furnishing to ensure that an acceptable standard is created for guests. We’ll talk about what furnishings and facilities are required in Part 2 "Setting  Up Your Holiday Rental Property".

Time taken to manage the property

Some owners can find managing their properties time consuming and stressful, particularly if they are not "internet savvy" or experienced in running a business. Finding staff to clean and maintain the property may also be seen as an onerous task.


An owner says:
"Whilst we enjoy owning a holiday home and we earn good money from it we found that we just weren't good at marketing or managing the property. We were happy to spend a bit more money to have an agency manage it for us. Many people like to do it themselves but for our personal situation it was the right decision for us."

Use it and lose it

The irony of owning a holiday home is that often when you want to use it most, so does everyone else! If you use the property in peak periods you may live with the "buyers remorse" of lost income or in the opposite situation if you don't use the property when you really want to you may feel that buying it has not been worth it.


An owner says...
"We've become so busy that we now have to book dates out for ourselves. We've come to terms with the fact that we'd rather have the income from peak season than spend the time there ourselves. We've found a balance by staying for a couple of days a month in peak season and enjoying more time at the house during off-peak periods."

 

Other Interesting Blogs

Property insurance

Essential Insurance for Holiday Rental Properties


What many holiday homeowners don’t realise is that general insurers often do not cover holiday homes, and if they do the insurance is more than often inadequate. Having tailored holiday home ins...

Read More

Stayz Introduces Booking Pre-Approvals (well almost)


Reply & pre-approve button to generate the payment request.     This generates a screen showing a summary of the pre-approval request:     Owners can check the details are correct or if they...

Read More

6 Ways to Market Your Holiday Rental Property


The Best (& Worst!) Ways to Market Your Holiday Rental  Having good photos, great descriptions and being listed on the right websites is crucial when it comes to marketing your holiday rental ...

Read More

What’s Important to Guests When Booking a Holiday Rental?


How to Make Your Holiday Rental Stand Out From The Crowd It’s no secret that keeping your guests happy is key to having success with your holiday rental, and knowing what’s important to guests wi...

Read More

Top 5 Culburra Beach pet-friendly restaurants.


Calling all dog lovers in Callala Bay! If you're seeking a delightful dining experience where your furry companion is welcome. We'll introduce you to the top five dog-friendly restaurants that Culburr...

Read More

Eating and Drinking your way through the South Coast


What are the best things about going on holidays? Sleeping in, getting away from the stresses of work, peace and quiet; but best of all it’s the best time to experience new drinking and dining exper...

Read More