Reasons to Reconsider Before Buying a Holiday Home

If your holiday home is more than a two-hour drive away, you’ll quickly start finding excuses not to go. And if your kids have Saturday sports, you may only visit during school holidays.

Expect an influx of “new friends.”

Once you own a weekender, people suddenly want to visit, and they may end up using it more than you. Unfortunately, freeloaders don’t make great friends.

Maintenance isn’t cheap.

Coastal and bush locations come with higher upkeep. Regular cleaning, gardening, repairs, and organising access for trades are challenging when you live far away.

You’ll need a reliable local contact.

Someone you trust to keep an eye on the property is essential and not always easy to find.

Land tax can hurt.

Depending on the unimproved land value, you could be facing annual bills running into tens of thousands.

Are you paying the right price?

City buyers often view holiday homes through rose-coloured glasses. A property may look like a “bargain” compared to prices back home, but still be overpriced for the area.

Timing matters.

The weekender market experiences sharp peaks and troughs. Buying during high demand is risky can drop quickly when city markets cool, and recovery can take a long time.

Expect limited capital growth.

Sea-change and tree-change regions typically lack the drivers for strong, consistent growth. Your holiday home will likely appreciate at a slower rate than a city property.

Consider the opportunity cost.

By locking your money and borrowing capacity into a holiday home, you may miss out on stronger investment returns elsewhere.

They are highly illiquid.

Holiday homes take time to sell. If you make a mistake or need to offload quickly, you may feel stuck.

Short-term rental income is unreliable.

Demand is seasonal, competition fluctuates, and regulations can change, meaning returns and occupancy will remain inconsistent.

Neighbour issues are harder to handle.

Permanent residents may oppose short-term rentals, and fellow weekenders might use their homes as party houses. Managing these situations remotely is challenging.

You may get bored.

Going to the same location repeatedly can lose its charm over time.

Renting is often simpler.

You avoid the costs, maintenance, and responsibility while enjoying flexibility and exploring new destinations whenever you feel like a getaway.