IP or holiday house?

[BayView]

I think it's a waste of money. My parents bought one and spend each weekend maintaining it.

bwaha!

I see this every single weekend down our way; the poppa guiseppi and nonna maria out there weeding, mowing, cleaning...get in the 1990 maroon Falcon on Sunday and drive back to Coburg...classic.

I would rather just travel first class every year to the destination of my choosing but each to their own.

I'm the same; why spend hundreds of thousands on a holiday house and go there to the same location year in year out, when you could still have an IP and get some of the costs of travelling paid for (the rent) to thousands of exciting destinations around the world?

 

[devank]

I'm the same; why spend hundreds of thousands on a holiday house and go there to the same location year in year out, when you could still have an IP and get some of the costs of travelling paid for (the rent) to thousands of exciting destinations around the world?

You could even spend a week there to 'fix up' the place for next tenancy

 

[Ausprop]

I'm the same; why spend hundreds of thousands on a holiday house and go there to the same location year in year out, when you could still have an IP and get some of the costs of travelling paid for (the rent) to thousands of exciting destinations around the world?

I take it you don't have kids? whilst i hate flying at the best of times, the thought of loading my lot up onto a plane gets the heart rate going just sitting here. better and less stressful to holiday at home for free (albeit in an IP that you stay in a lot). eventually will retire to it and the city house wil be the holiday home.

it's also incredibly social - you get to hang out with your different groups of friends on a rotational basis.

anyway each to their own

 

[chrispy]

I have the best of both worlds.

I go overseas 4 times a year - leaving next week for London, Iceland (to see the Northern Lights) and home via USA, away for 6 weeks, plus I will have the holiday house to use when I am home.

This is what I worked, went without and saved for....my ips are now funding a very happy retirement.

Chris

 

[Ausprop]

here's a nice one someone just snapped up for circa $3.5m....

http://www.realestate.com.au/property-house-wa-dunsborough-113144047

about $2700wk if you fix at 4.99%... somehow I don't think the buyer had to beg his bank manager for the money!

 

[monty python]

We have an IP on the coast about an hour from our home. Bought in 2004 and has been tenanted continuously. We are planning to take possession in about October and spend weekends and Christmas hols there, enjoying the beaches and organising a reno on the house.
It would be wonderful to keep possession and furnish it to use regularly, however still undecided if we'd use it often enough to justify the expense. Having somewhere to escape to, to take our kids and dog to, and enjoy as a second home for ourselves and family and friends, is very appealing. We could still afford to travel overseas every 1-2 years so we are lucky there.
I'll be watching this thread to see if issues arise that we have not yet considered.
Downside would be the maintenance (if we use as a holiday rental then we would have a managing agent on board to organise this in our absence).

 

[BayView]

I take it you don't have kids? whilst i hate flying at the best of times, the thought of loading my lot up onto a plane gets the heart rate going just sitting here. better and less stressful to holiday at home for free (albeit in an IP that you stay in a lot). eventually will retire to it and the city house wil be the holiday home.

it's also incredibly social - you get to hang out with your different groups of friends on a rotational basis.

anyway each to their own

I have 3 kids.

It is harder for sure, but if you stay in Aus it's not so bad.

As for social? I spend all week long talking to customers and listening to their issues. Last thing I want to do when I go on hols is talk to anyone but my family and chosen friends.

We went to the same caravan park 2 years in a row to do the theme parks in QLD. Stayed in the same cabin etc, it was good....I even socialised with a few humans.

But I've done that park, it's had it's run; time to do something different.

Next year is Rottnest Island for the 20th wedding anniversary. Different with 3 kids than it was while there on our honeymoon I'll wager .

O/S travel is waay too hard these days. Security procedures, overbookings, overcrowded flights, etc - have killed it for us.

You're right; some folk like to go to the same place year after year...

Me; there's too much world/Aus to see.

 

[locko24]

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.

Wow! That is cheap. Sign me up for 5 or 6!

 

[cimbom]

I have the best of both worlds.

I go overseas 4 times a year - leaving next week for London, Iceland (to see the Northern Lights) and home via USA, away for 6 weeks, plus I will have the holiday house to use when I am home.

This is what I worked, went without and saved for....my ips are now funding a very happy retirement.

Chris

Well done. Sounds like it will be a great holiday

 

[Ausprop]

sounds cheap here (Magnetic Island):

http://www.news.com.au/realestate/s...om-of-the-market/story-fndbawks-1226605402283

 

[MTR]

I take it you don't have kids? whilst i hate flying at the best of times, the thought of loading my lot up onto a plane gets the heart rate going just sitting here. better and less stressful to holiday at home for free (albeit in an IP that you stay in a lot). eventually will retire to it and the city house wil be the holiday home.

it's also incredibly social - you get to hang out with your different groups of friends on a rotational basis.

anyway each to their own

Its very social we made some great friends, but we rent out the holiday home now because my children no longer want to come along as their social life does not permit this.

All to their own, someone would think it was a crime to own a holiday home, if you can afford it then why not.

 

[Ausprop]

yeh i could imagine the kids getting to the point where they may not want to go (save for schoolies!) however ATM they are begging to go and to bring their friends along.

dont know what this misconception is about spending all the time gardening?? A couple of houses back I had some lawn and got a lawn mower guy to do it. I may put some lawn into this one but can't see it being a major problem in my life.

 

[INVSTOR]

yeh i could imagine the kids getting to the point where they may not want to go (save for schoolies!) however ATM they are begging to go and to bring their friends along.

dont know what this misconception is about spending all the time gardening?? A couple of houses back I had some lawn and got a lawn mower guy to do it. I may put some lawn into this one but can't see it being a major problem in my life.

Eeek schoolies! I'm bribing my kids to go on a family holiday overseas instead. It was extremely sad last year when a student/mentor from my daughters school died in Fiji on schoolies. We'll see how we go.

 

[Ausprop]

Eeek schoolies! I'm bribing my kids to go on a family holiday overseas instead. It was extremely sad last year when a student/mentor from my daughters school died in Fiji on schoolies. We'll see how we go.

that's bad - didn't hear of that. I think discouraging them locally and thus forcing them all overseas is a mistake. I have so many - so so many - enquiries from schoolies to rent, there is a serious business there for someone that wants to deal with it all.

 

[INVSTOR]

that's bad - didn't hear of that. I think discouraging them locally and thus forcing them all overseas is a mistake. I have so many - so so many - enquiries from schoolies to rent, there is a serious business there for someone that wants to deal with it all.

It was more so that the parents thought it was a better option than Gold Coast. I know schoolies isn't as big here but it's heading that way. They take massive bonds there to cover all the damage. May not be too profitable. Some people would get there parents to book in there names for hotels that wouldn't accept schoolies.

 

[Ausprop]

yeh I'd consider it with a massive bond and parental guarantee... just not sure how much a 17 year old can afford tho and whether it is worth the hassle of replacing vomit stained carpets!

 

[nhg]

Don't!

LOL- I was pretty careful (and don't drink), but my drunk friends walking around with hot coals had a tendancy to destroy couches and carpets.

We spent half the hols partying, and the second half trying to figure out the best way to hide the damage.

I pity the fool who turns the couch cushions over and see's the vomit stains.

 

[BayView]

that's bad - didn't hear of that. I think discouraging them locally and thus forcing them all overseas is a mistake. I have so many - so so many - enquiries from schoolies to rent, there is a serious business there for someone that wants to deal with it all.

A lot of the agents here in Drugmana/Rosebud - all the way to Portsea etc do holiday rentals.

The owners are the ones who won't rent to a group of school kids.

The reasons would be fairly obvious.

Often times; it's not the renters themselves that are the problem; it's the friends who come and visit them.

Even families can be a problem in holiday rentals - large rental bond/deposit solves most of it though.

 

[Blacky]

We have always owned a holiday house, it is basically a second home to me.

My folks got the place years ago, and have spent very little money on it since. With the cost of a holiday anywhere for 5 people over the years (30 of them) this place has paid for itself many times over. Plus it has meant that we are able to (and regularly do) spend weekends away - either as a family or just on our own.
Over the years we have set the place up so that if you want to go away you can literally pack some clothes and leave - everything else is there and ready. Ill often go there for just one night to finish off some work in peace and quiet. Or drive up there for the day to go for a dive.

Its now owned by us 'kids'. Mum and dad can spend the rest of their cash - but this one stays with us
In reality it has no monetary value to us - we will never sell it so dont look at it in that way.

In the meantime we have all still travelled quite extensively throughout the world. I wouldn't trade the house for a trip overseas (I dont like flying at the best of times).

I think if you were looking to buy a holiday house it comes to how quickly you can get to it (ie anything more that 3-4hours is too much hassle for a weekend). Which will determine how often you can use it. Once you own it you can set it up to cost you very little, and if you use it regularly then the annual cost/usage is pretty minimal (obviously subject to 1,000 assumptions).

If you can afford it then I would say go for it! Use it often. Why else would we spend our lives investing/working if it wasn't to purchase something we can enjoy?

Blacky