Investing

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What should I look for when buying a holiday home for investment?

Location is the most important consideration for holiday home investments. The property must be in the right area to attract regular rental opportunities, and to provide the potential for strong capital growth. Things to consider include: 
  • Surrounding infrastructure and amenities in your chosen location.
  • Future plans of local municipalities and / or developers for the area.
  • Tourist appeal, from kiwis and from overseas visitors. Will the property attract interest all year round, or only during peak seasons?
  • Accessibility of your property to major towns and / or airports.
  • How attractive is the property itself, and the street it’s sitting on?
  • Does the property enjoy good natural light, a quiet environment, and a good amount of accommodation space?
  • Will the property appeal to a broad range of tenants such as couples, singles and families?  Is the property near to restaurants and tourist attractions?
  • How is the property likely to hold its value? In a financial downturn, free-standing property tends to drop less in price than units or apartments. 
It's often wise to buy in an area that you personally enjoy taking holidays in.  That way, if rental income is difficult to get for any reason, of there is a downturn, you still have holiday accommodation that you can use personally and enjoy.
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