IP or holiday house?

[BayView]

It comes up very often in conversation here, and in general as I live my life - how folk are gunna "buy an IP someday"...

And yet; there seems to be that every second person has a holiday house, or cool caravan in the driveway rotting away.

They seem to find it easy to pull the trigger on a holiday house purchase which is only ever gunna keep their hand in their pocket forever if they are to keep it, yet can't make the decision to put the same money into a property which will possibly put dollars back in their pocket.

Interesting phenomenon.

 

[HotRod]

Bragging rights.

It's sexier saying you have a holiday house down on the coast burning a substantial hole in your pocket than an IP in some backwater putting money in your hand.

Happens at my daughter's school.

It's laughable.

 

[ok180]

Holiday homes are a massive waste of money. My grand parents had one and every few weeks when they went there for the weekend they would have to spend one full day cleaning, mowing lawns doing maintenance etc. No thanks! I would rather spend the 20k a year going to different places staying the flash hotels rather than cleaning and doing the same thing over and over when I have time off. Even if I was mega rich I wouldn't buy a holiday home.

 

[wategos]

My parents buying a holiday house was one of the best things they did for our family. Apart from being a fantastic place to spend the holidays while growing up the property has gone up over 100 times in value. Plus I learnt to surf.

 

[Spades]

Ahh yes,The Castle...

 

[chilliblue]

We have our one single strata unit that was supposed to be our holiday place.

Turns out 8% rental return was a better deal.

 

[chindonly]

Ahh yes,The Castle...

Bonnie Doon........ you can just feel the serenity!

 

[Angel]

My parents buying a holiday house was one of the best things they did for our family. Apart from being a fantastic place to spend the holidays while growing up the property has gone up over 100 times in value. Plus I learnt to surf.

Was that at Byron Bay?

 

[wategos]

Was that at Byron Bay?

Yes, I guess my username gives it away.

 

[Fifth]

Holiday houses made some sense back when you could pick up a shack on the beach for peanuts. Any place you'd even vaguely want to spend a holiday costs a lot of mullah to buy into now. Ordinary folk buying holidays homes... I do wonder at the reasoning.

If I had enough money to justify buying a holiday home, it would cease to be my holiday home and would become my retirement pad.

 

[Nemo30]

My friends family have a holiday house at the coast. The retired parents own it, but their 5 adult kids and their families use it regularly. The kids all put in for rates etc.

They regularly have large family holidays together which I think is great. It's fully stocked with everything you want on a trip to the coast - boat, kayak's, games room.

I'd love something similar.

 

[travelbug]

My friends family have a holiday house at the coast. The retired parents own it, but their 5 adult kids and their families use it regularly. The kids all put in for rates etc.

They regularly have large family holidays together which I think is great. It's fully stocked with everything you want on a trip to the coast - boat, kayak's, games room.

I'd love something similar.

I have friends that are similar. If you have a large family and use it regularly it can be great. My friend goes there aften and says they will retire there (can't see it happenning though as they love going into the city a lot).

I know some people rent theirs out at times to friends. I guess that would make it more appealling. It all comes down to cost VS benefits.

When I was a kid a few friends had a caravan down the coast. That was the thing then (well in my poor neighbourhood anyway). We thought that was pretty amazing.

 

[Aaron_C]

I think it's a waste of money. My parents bought one and spend each weekend maintaining it. I would rather just travel first class every year to the destination of my choosing but each to their own.

 

[datto]

Holiday homes are cheap atm. You can still make CG while enjoying your holiday.

Just recently I was in Nelson Bay and was amazed how cheap properties are there. Saw a 5yo house on 3 levels with views to die for (bottom level was a guest house). $730K asking.

Owner had spent over $1m. Driveway alone was $40K. Could make good $ on this one in say 5 years.

 

[Ausprop]

our holiday home is CF+ and has potential for large cap gains - quite different to a caravan?

 

[travelbug]

our holiday home is CF+ and has potential for large cap gains - quite different to a caravan?

So it's not truly a holiday home then if it's CF+. Who's paying the money? So it's really an IP that you sometimes stay in?

 

[travelbug]

Holiday homes are cheap atm. You can still make CG while enjoying your holiday.

Just recently I was in Nelson Bay and was amazed how cheap properties are there. Saw a 5yo house on 3 levels with views to die for (bottom level was a guest house). $730K asking.

Owner had spent over $1m. Driveway alone was $40K. Could make good $ on this one in say 5 years.

Yeah but who's going to pay the $865 a week interest?

 

[Ausprop]

So it's not truly a holiday home then if it's CF+. Who's paying the money? So it's really an IP that you sometimes stay in?

sure, that's how holiday homes usually work,except the sometimes is often

 

[chrispy]

It is a coincidence that this thread has turned up as I bought a holiday house on Thursday.

I previously owned one more than 10 years ago, which I bought for a pittance $60k, replaced the steel poles that were rusted and used and rented it out for the next 3 years. I was then approached to sell it for $200k, so I did!!!

I was working long hours at the time and so was my husband and we just didn't get to use it as much as we would have liked, plus the cutting of the grass and the maintenance was a constant drain on our time.

Now I am no longer working with sufficient IPs to give me sufficient rental income to live on, plus cash in the bank, I decided it was time to stop looking and buy one. I have been looking for quite a while.

This one came on to realestate at 8pm Tuesday night, I phoned Wednesday morning, drove down and had a look at it Thursday and bought it on the spot!!! I have a niece and two nephews within a block of the house, so it gives me a chance to catch up with them and their kids. My son will spend time there with me. So its all good.

Plus I can let it at holiday times and Grand Prix to pay the outgoings.

I intend to spend a lot of time there, plus there is very little grass to maintain

Chris

 

[Nemo30]

Thats a beautiful house - congrats!