I always find summer time, especially the Christmas and New Year period (in the Southern Hemisphere), to be quite an interesting time for real estate. Many people take time off work and while some go on extended overseas trips, lots simply spend a week or two in a rented house near a beach or other location away from home.
The pairing of good weather (hopefully) and beautiful scenery with some much needed relaxation can often see holidayers start to contemplate the idea of owning a holiday home themselves.
So what do prospective purchasers need to look for in a property intended primarily for vacation use, and how do you ensure you get the most from your investment outside the summer months? I read a great article the other week on the Domain website by David Adams entitled 'Maximum pay-off for minimum outlay' which I thought summarised very well the aspects of holiday properties that are important in determining rental returns and what investors should consider.
A big part of the success of a holiday home in the rental market is the number of people that the property can easily sleep. The installation of bunk beds, beds with trundle beds, and queen beds can ensure that a house is both couple-friendly while sleeping a large number of guests. With some smart configuring, a house with as little as three bedrooms can then become attractive to families or groups of friends who wish to go on holidays together, who are then able to save on accommodation costs by hiring one house.
Outdoor entertaining areas were also flagged by the article as an aspect that can increase the rental income from a holiday home, both in summer and during the colder winter months as well. The inclusion of a barbecue, large outdoor setting and potentially even outdoor heaters can help to heighten your property's attractiveness to holiday renters.
If purchasing a holiday home that requires renovation, or even just a little bit of a sprucing up, remember that this is not your primary residence and you don't necessarily have to spend a fortune on it.
There are definitely ways to give a property a make-over without having to go overboard. According to the article, a fresh coat of paint and a carpet cleaning can often be enough to substantially improve the presentation of your holiday home. When painting, remember that large groups of people may be staying in your house – the use of lighter and more neutral colours can help to increase the property's feeling of space, often making for a more enjoyable experience for renters.
So if you think you may be in the market for a holiday home, remember that this is not your main residence and you may need to consider different requirements than you would with a normal home. Such contemplation will help to ensure that as well as a holiday home, you will have a viable investment option both within and outside of the summer months.