If you decide to use your investment property also as a holiday home, it’s important to clarify which is your top priority.

Holiday houses tend to be in locations that experience fluctuations in demand, due to a transient population, located outside capital cities and are more sensitive to downturns.

Limited capital growth is more prevalent in these areas and normally doesn’t become apparent until 10 or 15 years later, for example, the difference between 4% and 6% annual growth on a $600k property, will result in 33% less wealth over 20 years.

There is an increased risk that your property can remain untenanted for long periods, due to your requirement for short-term leases, or you making use of the property during peak seasons.

It is paramount that you formulate a plan if your intention is to use the property in both manners.

Consider that leasing the property will add extra time and effort on your part, as well as the maintenance issues.

A self managing platform like RealRenta, as well as saving you thousands on management fees, will ensure that you have instant access to advertising your property as well as tenant screening and applications.

Tenants can request all maintenance via the platform in real time, giving you the landlord, flexibility and peace of mind.

Ultimately, you want to invest in a property that will make it easier to secure an ongoing rental yield as well as a holiday home, that you genuinely would want to spend time in.

The trick here is to look for properties in areas that are holiday or short-term hotspots all year round as well as, formulating an exit strategy if circumstances change.

Avoid areas that are saturated with rental properties and cheap hotels/motels or that become ghost towns on the off-season.

Do your research and only listen to independent sources, verifying everything you are told of course.

Above all else- buy a property that will be an asset, regardless of rental yields.

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