Owning a holiday home is a goal for many people. However, in the past it was a luxury limited to the lucky few. Back in 2014, 560,000 Australians owned a holiday home, and Melbournians were the biggest enthusiasts, with one in 20 owning a getaway.
That was before interest rates hit rock bottom and online platforms like Airbnb and Stayz made it easy to rent out holiday homes, potentially turning them into money-spinners.
While Covid-19 lockdowns put a temporary dent in the short-term rental market, vacation homeowners in popular tourist destinations have been compensated by exceptional price growth.
CoreLogic’s quarterly regional market update shows that in the 12 months to January 2022, house values in Kiama, a popular tourist destination on the NSW south coast, have soared 43.9%. It’s taken the median value to $1,633,086. To put this in perspective, in the 1990s it was possible to buy a home in the Kiama area for less than $140,000.
Other favourite vacation destinations that have performed well over the past year include Byron Bay, where house values are up 30.2%, the Gold Coast (up 36.3%) and the Sunshine Coast (35.4%).
These skyrocketing values haven’t just been driven by demand from holidaymakers. Data from the Commonwealth Bank reveals quarterly migration from capital cities to regional areas over the past two years is averaging 15% higher than in the two years before Covid.
It raises the question, is a holiday home still a good investment? And if you own a vacation place, is now the time to cash in?
Rentals look healthy
Bu hikaye Money Magazine Australia dergisinin April 2022 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Money Magazine Australia dergisinin April 2022 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
An outrageous, beautiful monopoly
Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.
Drop the anchor to judge value
Buying and selling decisions should be based on where a stock price is going, not where it has been.
Powering the AI boom
Beyond the software and chipmakers, where will the energy come from?
Get into life
Tucked inside super are products that can protect you from life's inevitable uncertainties.
Paths to home ownership
Taking the road less travelled can sometimes deliver unexpected benefits.
Sold! Quick ways to add value
Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.
Money lessons the kids need to know
Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.
Property-investing rules: are they likely to change?
The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.
What's love got to do with it?
A rollercoaster of emotions could be driving poor crypto behaviour.
Are we ready to be cash-free?
Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.
