holiday appartments

From: Gail H


Has anyone been badly burned by holiday appartment investment? Not the really expensive, off the plan Gold Coast type. More like the $100,000 well established beach front in Coffs Harbour type. It doesn't seem like a lot to risk and it would be nice to own a property on the beach, but the thought of the property languishing in a rental pool for months of the year is a little scary.

Any positive/negative experiences out there?

Gail
 
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Reply: 1
From: Jenny Nowakowski


I looked at one last August. I think it was at the Dunes complex at Coffs Harbour. I think the body corporate fees were $400 a quarter! The kitchenette was so tiny there wasn't room for a stove, only a microwave and fridge.

It had a permanent tenant in it. I didn't buy it, but I was wondering the same thing, how many holiday rentals you would get per year.

They had a couple listed at www.realestate.com.au under Coffs Harbour.

Jenny
 
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Reply: 1.1
From: Cathy Baxter


Hi

Have looked at Coffs and have found that many of those little holiday units have been turned into low cost housing. And the market has been flooded with them for sale. All the Armidale people selling up - 'cos they couldn't get holiday tenants!!!

Cathy
 
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Reply: 1.1.1
From: Gail H


Sounds scary. Thanks for the feedback.

Gail
 
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the beach house

Reply: 1.1.1.1
From: Michele B


A bit off the topic but might be relevant for some.

I've nearly finished building a beach house in a really lovely and remote part of SA, about 3 hours from Adelaide. Being one of those icon dreams, the beach house (or apartment) seems to be a common subject in investment Q and A columns. And mostly I've noticed it doesn't get good reviews. So why did I do it?

It was a lifestyle decision - basically I wanted my own bit of coast for escape purposes. And in that sense it's been fantastic - I still can't believe how energising it is to spend time there. No people, no noise, no phones.....and no computer either, but that's good for me, right?

People will sometimes tell me they wouldn't want to be tied down to one holiday location - well neither would I. And I guess that's a big factor in making the decision. If you feel you HAVE to spend all your holidays there to justify the cost then don't do it - it'll just stress you out.

Knowing this, I tried to build as cheaply as possible. What a learning curve! I soon discovered it is far cheaper to have a builder work WITH you rather than FOR you so I supplied the materials and trades. Also discovered the pitfalls of building by the sea - there were rust issues to deal with on site even before the house was underway. Chances are the sea will eat your house even faster than termites so maintenance is a major consideration and an on-going expense.

Clearly, this is not a money-making venture! Intensive holiday rental might cover costs but would be way too harsh on the fragile coastal environment. So occasional holiday rental plus sharefarming income will simply be a help and that's all, at least in the first few years.

Many people wishing to share a similar dream/fate probably hope it will fund itself and of course it may. Just be realistic about the maintenance issues and the logistics of property management, especially in a remote location. Having said that, there's something very comforting about having a sanctuary, a place of your own where there is absolutely no stress. And in seeing changes in the environment on every visit, getting to know individual plants, birds and even fish. Oh well, it's my porsche.

michele
 
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the beach house

Reply: 1.1.1.1.1
From: Sergey Golovin


Michele,

About sharing holiday place - we have person at work has two bedroom unit on Gold Cost. All he does is rents it out to colleges at reasonable cost. Everything provided washing machine, dishwasher, linen, food (whatever you did not use, leave it for next family), under building garage, etc. We had week in QLD and I missed out, silly me should've "book" it in advance. Works very well for him as well as for all of us.

Serge.
 
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