Investing

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Are there any hidden costs associated with buying a holiday home?

Make sure you don’t underestimate the ongoing expenses and outgoings involved with the ownership of an investment property. These costs can include:
  • Body corporate levies and costs.
  • Letting and property management fees.
  • Insurance costs.
  • Caretaker, cleaning and maintenance costs.
  • Electricity, gas, water and council rates.
Consistent advertising to find tenants to rent the property, regular property maintenance, furniture replacement, and linen hire are other expenses to consider.

Expenses you may choose to incur in order to make the property more appealing to potential renters could include the provision of high quality furnishings, Sky TV, modern kitchens and appliances, air conditioning or heating units, barbeques and outdoor dining areas and even broadband internet connections.

Holiday homes can sit vacant for long periods.  As an investor, you should ensure that you have funds in reserve to cover mortgage repayments and fixed costs.   
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