Property Focus22 Jan 2020

If a holiday home has always been a dream of yours, now may be the time to make that dream a reality. Analysis done by the Real Estate Institute of New Zealand (REINZ) shows that while house prices around the country may be on the rise, the same is not necessarily true for some popular holiday locations. The latest REINZ statistics reveal that some holiday hotspots are now more affordable than last year.

Here’s what to consider if you are looking to buy that holiday home you’ve been dreaming about.

Be clear about what you want from your holiday home
Are you buying a holiday home with an eye towards capital gain, do you want to break even or cover your mortgage through rental income, or do you just want a place where you and your family can live the Kiwi dream of endless summers spent at the beach? Be clear about what your expectations are before you start looking.

Find the right property
Finding the right property at the right price can make all the difference if you’re planning to rent it or hoping to achieve a capital gain when you sell it one day. Historically the country’s most popular holiday rental properties are within easy driving distance of major metropolitan areas, places like the Coromandel, Wairarapa and Bay of Islands.
Shopping around can pay dividends. The latest REINZ data shows that in Paihia, gateway to the Bay of Islands, affordability has increased, with median prices for the three months ending November 2019 3% below the same time last year. Even places like Waiheke Island, Wanaka and Pauanui have seen prices drop back over the past year.*

If you want to maximise your holiday home’s rental income, look for an area that has year-round appeal, like Queenstown or Taupo. Alternatively, you could look in less expensive areas that have strong seasonal appeal, like Ohakune or Gisborne.

Read Full Article