I have a holiday home. We don't rent ours out because the time we would rent it for is the time we want to use it. I think that is one of the cons of holiday houses - that the most demand will be when you want it ie Christmas and other holidays.
We let family and friends use it in exchange for doing something around the house. No-one has ever left it any way other than immaculate although my ILs insist on moving the microwave. We have very little bench space so I put the microwave on top of the fridge because I only use it once in a blue moon. They move it down to use it and then leave it there so I always have to put it back up and always end up jamming a finger. I'm thinking of giving it to the neighbours.
As an investment....... our advice was that we should think of it as an investment in lifestyle. Even if you do rent them they don't bring great returns and capital growth can be patchy (although I suspect that now is a good time to buy because the market in a lot of tourist areas is very flat).
I am lucky to be in a position to half own one house with my sister, and my mum half owns another with her sister. One by the beach and one in the alpine region.
For us there are no issues with the beach house. It is currently rented to desal for the next year. After that, it gets about $1,500 a week for peak season, so it pays itself.
The alpine one is a bit tougher. Too many issues with others using it and not contributing anything, so my mum gets lumped with the expense. My DH and my dad maintain it, which makes it easier, but co owning in quite hard. But because it is in such a lovely spot, everyone wants to go there.
Sangie - Your cousin is lucky! Whereabouts on the Island is his house? I hope you get to use it too!
Onyx - We want to buy one as a lifestyle investment too . We'd only rent it out for a couple of years to help with the mortgage. It will be a bit sad when we can't use it over Christmas, etc., but one day it will be all ours to use whenever we want. We could possibly get a cheaper "shack" and not have to rent it out, but long term I dream of ocean views and if you want them you have to pay! How frustrating that your MIL moves the microwave! Maybe you need to leave a note on it.
Lilima - Wow you guys are lucky having a couple of holiday homes in the family! I wish my sister could afford to go halves with me! I'm guessing yours must be close to where I want to buy based on renting out to desal? Do you find people who rent it out over holidays look after it? I'm having nightmares about schoolies lol! Bummer your mum gets lumped with the expenses for her property. I think if we buy one we'll set ground rules from day one.
I'm hoping the market stays flat over the next 12 months, we'd have just that little bit more money saved to make things more comfortable. I wish we hadn't seen our dream property on the weekend, I want it now!!
We live at the beach and 60-70% of the houses to rent here are half houses, so you rent either upstairs or down and owner uses the other as a holiday home.
Personally not something we're interested in but it's a way to make it more affordable.
They also often convert the garage and rent that out to mostly surfy bums.
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. We'd only rent it out for a couple of years to help with the mortgage. It will be a bit sad when we can't use it over Christmas, etc., but one day it will be all ours to use whenever we want. We could possibly get a cheaper "shack" and not have to rent it out, but long term I dream of ocean views and if you want them you have to pay! How frustrating that your MIL moves the microwave! Maybe you need to leave a note on it.
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