How to invest in a holiday home

Dreaming of buying your own beachside pad or forest retreat that you can enjoy part of the year and rent out the rest? Here’s what you need to know.

With international travel off the cards, many people are choosing to holiday domestically. If you have the budget for it, a great way to do that is by purchasing your own holiday home.

The benefit of owning a holiday home is that you’ll have a vacation retreat for a little R and R throughout the year, while also potentially gaining additional income if you rent it out.

So, what should you be aware of before investing in a holiday home? Here are some tips.

Be clear about the purpose

One thing to keep in mind is that the periods when you want to stay at your holiday home may also be the times you can make the highest rental return. If your property is in a beachside location, for example, demand may be highest during summer, so you may have to forgo staying at your holiday home during those peak periods.

Before buying, consider what’s more important to you – making the big bucks or having access to the property during those peak times. That way you can budget and plan your cash flow accordingly.

Remember the golden rule

As with any property purchase, location is key. Optimally, you’ll want to choose a property that offers solid capital growth potential. Consider the supply of holiday homes in the area, as well as the demand in the market.

Aim for locations that aren’t solely reliant on seasonal crowds and consider choosing areas with industries other than just tourism, so that your property remains tenanted.

To attract a wide variety of renters, opt for areas that have access to amenities and major infrastructure.

As an example, the Gold Coast has proven popular with investors snapping up holiday homes in recent months. Beachside suburbs such as Miami, which has experienced a 12-month capital growth of 28.21% for houses, are in high demand. With infrastructure projects like the Gold Coast light rail – stage 3 in the pipeline, not only does the Gold Coast offer the lifestyle element, but also great access to amenities and major infrastructure.

Check the zoning

It’s important to understand the local zoning rules before purchasing a holiday home.

There may be restrictions on short-term accommodation use or you may need to make an application to be a short-term accommodation provider. Also be aware that in some areas of Australia, there may be laws regulating short-term rentals that limit the number of days you can rent out a holiday home, so be sure to do your homework.

Understand the tax implications

It’s always a good idea to speak to your financial planner or accountant about the tax implications of making a big purchase like a holiday home.Some things that should be on your radar:

Something else to keep in mind is that you’ll need to be meticulous about record keeping.

Like to chat about finance?

If you’re considering a holiday home purchase, chat to us about your finance options. We can explain your borrowing power, including whether you can use any existing equity to help you achieve your goals. Reach out today!

Are you a first homebuyer looking for


We can help get you into your new home.

We’ve worked with clients across Australia to access the different first home owner grants (FHOG) as well as the various stamp duty and other concessions that may be available depending on which state you are in. We can talk you through your various options as well as helping you compare things like buying vacant land vs. an established home.

Enquire today!

your numbers

Use our online calculators to work out how much you can borrow, loan repayments, stamp duty and lots more.

View calculators

With 40+ lenders to choose from, the options are never ending!

A word from our satisfied customers

Maxine Zhong
Maxine Zhong
19 October 2023
Amanda has been such an incredible support throughout our very first time going through the home loan process. Her thoughtfulness to regularly check in to make sure all our questions were answered and that all our documents were in place helped to make the whole daunting process feel seamless and easy. I could not recommend her enough - she made sure to keep us informed every step of the way and made sure all necessary documents/processes were completed well ahead of time so we never had to worry about missing any steps. She went well above and beyond her role, and I know we will definitely be coming back to her in the future, as well as recommending her to all of our networks! Thank you again, Amanda!
Mark Nesbitt
Mark Nesbitt
11 October 2023
Greg and the team provide an outstanding service. Highly recommended
Christine Tran
Christine Tran
23 September 2023
Yuval handled my first ever home loan, he did such an amazing job I asked to him to refinance for me 2 years later. Yuval made everything very easy for me, and will give his best recommendation as if it was his own. Would always recommend Yuval :)
David Petrini
David Petrini
25 August 2023
Yuval Bloomfield was an absolute delight to work with. He made it extremely easy for my clients to discuss about their financial situation. With Yuval's strong connections he was able to get the loan my clients wanted in very quick time. Will definitely refer Yuval again.
Sophie Linehan
Sophie Linehan
24 August 2023
Greg and the team at 1st Street were fantastic all the way through the process of getting our financing sorted and buying a new home. They not only secured us the most competitive mortgage in the market but they also gave advice on a number of mortgage-adjacent questions that came up along the way. Their responsive and thoughtful guidance helped make the nail-biting process clear and calm. We would definitely recommend their services.
Gabrielle Scott-Jones
Gabrielle Scott-Jones
18 August 2023
Greg and his team gave me exceptional advice and support. They were timely and detailed in their responses and dealt patiently with me as a first home buyer and all of my questions. The lender at the bank commented on how well I was being looked after compared with other brokers in the market. I’d highly recommend 1st Street to anyone, including friends and family.
Eli Simic
Eli Simic
15 August 2023
Great communication and fast service
Richard Kuipers
Richard Kuipers
11 August 2023
Jeremy and his team are superb. Negotiated the best deal for us and were an absolure pleasure to work with. Highly recommended, you can't do any better in my opinion.
Jordan Rivkin
Jordan Rivkin
1 August 2023
The team at 1st Street truly are professionals. I can't recommend Jeremy highly enough, he is extremely competent and just a great guy. You're in safe hands with 1st Street!
Yossi Bengida
Yossi Bengida
23 July 2023
Another amazing job by David and Bree. Always available for our questions, helpful and just 10/10 Seriously good work !! See you on the next one :) Yossi and liz