Investing in a holiday rental at the Bunya Mountains – what you need to know
How investing in a holiday rental works
When buying a property to be used as a holiday rental, investors usually chose locations close to holiday destinations. Whether it’s a sea change or a tree change, plenty of holidaymakers are looking for a more private and peaceful option than a crowded holiday unit.
Once you’ve bought the property, you’ll need to set it up with everything it needs for people to be able to enjoy living in the property short term. That includes furniture, appliances, cutlery and crockery, linen etc. Then you’ll need to set your rental prices and advertise your holiday rental to potential prospects. Tenants will book short stays in the property for a holiday or getaway, and will pay you for the privilege.
At the Bunya Mountains, there’s a strong rental holiday scheme, with plenty of owners using their property as a holiday let. All these properties are rented out through a central management scheme, the Bunya Mountains Accommodation Centre https://bunyamountains.com.au
Advantages of owning a holiday rental
- There is a wide array of financial benefits to investing in a holiday rental, including:
- Steady cash flow, as tenants can effectively pay off your mortgage
- Higher cash flow, as holiday rentals generally provide higher yields than traditional renting
- Long-term security, as real estate is considered a strong long-term investment
- Passive income, as the payments will come in without you having to do anything
- Diversification of your investments, which can protect you in economic downtimes
- Tax advantages, as you can deduct many expenses associated with your investment property
- Better depreciation, due to the additional furnishings
- Future planning, as this could be a great way to purchase a future retirement home
There are lifestyle benefits to owning a holiday rental as well. You get the dual benefits of rental income, as well as free holidays whenever you want.
All you need to do is make your property unavailable at times you want to holiday there, and away you go – no need to book, pay for accommodation, or even pack anything except your clothes and personal gear!
How to ensure you make a wise buy
Of course, investing in a holiday rental always comes with potential pitfalls, and requires a bit of research. Before committing to a property, you’ll need to find out about the rental rates of your competitors (other holiday rentals) as well as other professional accommodation providers, such as hotels.
This will give you an idea of what your target market is prepared to pay, and also what facilities they will expect in return. Undertake a detailed analysis to ensure you understand the true cost of owning the holiday let, and set your rates accordingly, with a plan to gradually increase them over time.
The management problem
One of the main drawbacks of holiday rentals is the amount of management required to run the venture. Generally, there is a fair amount of management involved in letting the property, as well as cleaning and gardening to ensure it is always in a state of readiness for tenants. And as you may be located a long way from the property, this can present a challenge.
However, when you invest in a Bunya Mountains holiday rental, the problem of managing the property is taken care of for you by the Bunya Mountains Accommodation Centre. You’ll pay a fee, but in return, you’ll earn back your time. All property management issues are taken care of with no effort required on your part. All you have to do is sit back and watch your profits accumulate.
Guidelines for choosing the perfect holiday let to buy:
· Choose a self-contained property, as this will give better capital growth, as well as allowing you to enjoy holidays in the property
Understand how holiday rentals work and how much income you can expect, and plan for ongoing costs
Choose a property located within three hours of a major centre
- Target an area with plenty of attractions that is likely to entice people to stay for up to a week at a time in peak season, or weekends in off-peak season
- Don’t forget to claim your property-related tax concessions
- Make sure your holiday location has a pub, café or other eating facility nearby
- Choose a strong management company to manage the rental – such as the Bunya Mountains Accommodation Centre
The Bunya Mountains Accommodation Centre has a number of attractive properties and blocks of land available for purchase, and you can view them here https://bunyamountains.com.au/real-estate/ or get in contact on (07) 4668 3126 for our current list of properties and land for sale. As well, you can view all the rental properties that are currently available, and get an idea of how yours will compare https://bunyamountains.com.au/accommodation-search/