“People choose holiday homes purely on emotion,” said buyer’s agent Chris Gray. “They’re not buying in the highest capital growth area, not looking at tenancy, not looking at what industry is supporting the local area. They’re buying based on where they want to hang out on the weekend and it’s the worst possible way to invest.”
However, Ray White sales manager Warwick Davis believes that a holiday home can be a sound investment.
“It’s a tax-deductible expense, provided you rent it out for a portion of the year,” he said. “Many of our clients either rent out their holiday homes for most of the year and spend Christmas here themselves, or they rent it out during the high season and collect a chunk of rent then.”
People who want to invest now in a holiday home might need to pay more due to the current house prices, which are not showing any signs of abating.
Collections: Mortgage News