I was recently talking to some ski fanatic friends of mine who are thinking about buying a place in the NSW snow fields to visit once a year. Based on their research so far, the limited number of properties available and their associated (often high) prices are proving to be a bit of a barrier. I'm sure my friends are not alone in this finding.
Our conversation got me thinking about others who own holiday homes or investment properties, basically properties that are not used as a primary residence, and the quite distinct locations that people seem to lean towards. With house prices increasing at the rate we're seeing now, perhaps the purse strings may be a little strained by a purchase in an area that is an obvious choice. I thought I'd use this blog to explore the notion of buying in less obvious areas and thinking outside the box when it comes to property.
When it comes to holiday homes, the majority of the people that I talk to seem to want to be near the beach in summer and the snow in winter. I'm not denying that these types of areas are both fantastic to visit, but some waterfront properties can definitely cause a bit of pain to your bank account. How can you look for something that fits comfortably within your price range, yet satisfies what you want to get from your time away?
I would start with identifying what it is that you want to achieve through buying a holiday home. Is it time away from the city in a beautiful location? A peaceful environment to clear your head after a busy week at work? Perhaps you want to be close to people and amenities such as food supplies?
There are a great number of different locations that you may not have even considered looking in, because they don't immediately fit with your idea of where a holiday home should be. Mountainous regions, for instance, can be amazing getaway locations. There's nothing like a bit of mountain air to clear the head, and the scenery can be truly stunning. If it really is the beach you're after, why not look in the next couple of suburbs along or back from the water. It may not be as close as you'd like to be, but the price tag will certainly look a bit more attractive. The same goes for the snow as well.
The same 'thinking outside the box' approach can also be applied when considering the purchase of an investment property. I constantly come across people who are hesitant to buy in areas outside of where they live themselves. If you are comfortable with prices in your own area, then by all means purchase nearby. However with many locations reportedly experiencing soaring house prices, close by may be out of the question.
Buying interstate or intercity does not have to be daunting. Property managers can be appointed to run your investment, a tactic which would often be recommended even if the property was nearby. Without the restriction of location, you can really do your research and nut out the areas that you feel are growing in value, but where prices are reasonable and within your budget now.
I suppose the essence of what I'm saying is that you don't have to purchase a holiday home or investment property in areas that you'd always assumed were the best in which to do so. If you put a little bit of creative thought into it, you may realize more from your investment value-wise or find an unexpectedly great home away from home.