Can a weekender stack up financially? Angus Raine, Executive Chairman of Raine & Horne says “Yes” – if you follow some basic rules.

It’s that time of year when Aussies load up the car with kids, eskies and cossies and hit the road for some well-deserved relaxation. 

This mass migration – often to coastal areas, isn’t just a chance to refresh. For many it can be the start of an exciting journey to buy a holiday home.

But given today’s high property values, it is important for a weekender to pay its way. And it can be done. 

How much will a holiday home cost?

The price of a vacation retreat will vary depending on the type and size of the property and its location. However, they can be surprisingly affordable.

As a guide, a one-bedder apartment located one block from the beach in Wollongong can cost around $350,000.

A single bedder unit with water views in Surfers Paradise can set you back just $560.000.

In Victoria’s Mornington Peninsula, a 3-bedroom house in Tootgarook, a short stroll from the ocean is priced at $695,000 - $745,000.

In WA, the coastal retreat of Mandurah offers a 3-bedroom duplex just 500 metres from the water, priced upwards of $549,000.

Of course, the sky can be the limit if you are looking for a holiday home of grand proportions in a highly prized location.  

The key is to decide where you want to buy, work out a budget, and talk to the local Raine & Horne property experts to see what’s available in your preferred area. 

Will your weekender deliver capital growth? 

One of the perks of owning a holiday home is the opportunity to build long term wealth while you enjoy a place to relax. 

The good news is that regional markets are no slouches when it comes to capital growth.

CoreLogic says areas such as Mackay, Geraldton, and Townsville are seeing “exceptional (price) growth” driven by affordability and lifestyle appeal[1].

The latest CoreLogic data shows two regional markets took the top spots for price growth nationally in 2024, with WA's Beachlands market rising 38.4% over the year, and QLD's Dolphin Heads notching up the biggest gains for units at an impressive 52.8%[2].

The trick is to do plenty of research to understand what will drive values higher in a location. Your Raine & Horne expert can provide insights into price movements for a particular market. 

Will you rent out your holiday home?

Gone are the days when weekenders stood empty for much of the year.

A holiday home can be a lucrative source of rental income if you are prepared to offer it for short term accommodation.

The short term rents earned by holiday homes can often be a lot higher than regular long term rents. 

Check out Raine & Horne holiday listings for an idea of the various rents being asked in popular areas. 

Bear in mind, some councils and state governments are starting to cap the number of days that homes can be made available in the short term rental market. 

This shouldn’t be too much of an issue though if you are primarily buying a property for your own enjoyment. 

Tax savings can make a vacation home more affordable

Part of the appeal of renting out a holiday home is the potential for tax savings.

Always speak to your tax professional for tailored advice, but as a guide you may be able to claim part of the property’s costs on tax as long as it is rented out or available for rent[3]. 

The holiday home “rules of engagement”: Angus Raine’s 5 tips for making a holiday home work

One option to make a holiday home more affordable is to buy a place together with family and/or friends. 

This calls for conversations about how a shared arrangement will work. But by having clear ‘rules of engagement’ in place from an early stage, a shared weekender can be personally and financially rewarding. 

Here’s what to bear in mind.

1.    Managing peak periods

While everyone may want to use the holiday home in peak times such as Christmas or Easter, it’s worth working out how often – and when – each co-owner gets to enjoy the retreat. It can prevent disputes later on.

2.    Contribute to a shared sinking fund

Financial contributions towards the ongoing costs of owning a home should be fair and equal. If everyone tips in a fair amount to a shared kitty for costs such as insurance and rates, the property – and relations between co-owners – can be kept in good shape at all times.

3.    Talk about repairs and maintenance 

Keeping your holiday home is great shape not only contributes to capital growth and makes it more attractive to the short term rental market, it also prevents minor issues blowing out to become costly repairs. 

It’s not a bad idea to pay a gardener to keep the grounds neat and tidy on a regular basis. But organising an annual working bee can be a great way to keep holiday homes spick-and-span.

By getting all the owners together to do some maintenance chores, you’ll not save money, it can also be a valuable family bonding session.

If you’d rather relax than roll up your sleeves for maintenance chores, it may be wise to consider an apartment as a holiday home rather than a house. Units tend to involve much less maintenance.

4.    Agree on cleaning 

A holiday home should always be left neat and clean for the next person. A simple way to do this is to hire a cleaner.  This is critical if you plan to offer the place for short term rentals, which demand a very high level of cleanliness. Dirty linen should never be a concern. Occupants should take their towels and bedding to the holiday home and remove them when they leave. The home should always be left tidy to avoid any conflicts. Additionally, remember to leave a full gas bottle for the barbecue for the next guests.

5.    Have an exit strategy

Life doesn’t stand still for long, and at some point one owner may want out before everyone else is ready to sell. 

Discussing an exit plan before you commit to a property can help to avoid future hiccups. 

If co-owners put their shared plan in writing, so much the better. Everyone will know where they stand from the start.

Now, sit back, relax and enjoy the good life

Owning a holiday home can be a wonderful way to connect to a special area, make great memories, and build wealth.  

To get the ball rolling with your holiday home, set a date to catch up with the Raine and Horne team in your preferred piece of paradise.  

 
[1] https://www.corelogic.com.au/news-research/news/2024/mining-regions-up,-coastal-markets-down-as-queensland-and-wa-serve-up-regional-property-winners
[2] https://www.corelogic.com.au/news-research/news/2024/2024-a-year-of-waning-demand,-rising-supply-and-waiting-for-interest-rates-to-fall
[3] https://www.ato.gov.au/individuals-and-families/investments-and-assets/holiday-homes