Investment - Individual

Is buying into a timeshare property a good investment? Timeshare schemes are a type of investment known as ‘managed funds’. Generally this means that the scheme...
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I’m looking to buy an investment property. Is a holiday home a good choice?

Choosing between a conventional investment property and a holiday home investment can be tough. You really need to decide whether you’re making the purchase as an investment or lifestyle choice.
 
Here are some useful questions and tips to help weigh your options;
  • Will the investment property be used as a rental property or holiday home?
  • Are you prepared to cover a large portion of the running costs out of your own funds?
  • What is your long or short-term financial goal for the property?
  • Will the investment property offer you any tax benefits?
  • Are you confident of your financial position if there is a downturn in the holiday rental or sales market?

Tips:
  • Try and take the emotions out of your decision making
  • Remember, investment property (other than your main residence) attracts capital gains tax when selling or transferring the title to someone else
If you are a first time property investor who requires consistent rental income to cover mortgage repayments, it may be safer considering a long-term residential property in a capital city or a highly populated area, rather than a holiday home investment property.
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