Your Quick Guide to Investing in a Holiday Home

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Imagine having your own mountain retreat or a beach-front hideaway — somewhere you can both relax and earn rental income. Investing in a holiday home can help you diversify your property strategy and give you a personal getaway. But there are a few key things to think about first.

1. How Will You Use It?

  • Decide how often you’ll stay vs rent it out.

  • Peak holiday seasons often bring the most rental income — but that could clash with times you want to visit.

  • Is this going to be rented year-round, or mostly in tourist season? That impacts budgeting and returns.

2. Do Your Market Research

  • Understand local demand: how many holiday rentals already exist, and how often they’re booked.

  • Look for growth potential: Are there new infrastructure upgrades, or good access to shops, transport, and amenities?

  • Know the competition, and be realistic about quiet periods.

3. Check Local Rules & Regulations

  • Short-term rental rules change by council — some places restrict holiday letting or require registration.

  • You might face limits on occupancy, noise, parking, or even fire safety standards.

  • Some regions also have extra costs, like a short-stay levy (e.g. in some areas, 7.5% applies for bookings under 28 days).

4. Understand the Financial Side

Owning a holiday home isn’t just about mortgage payments — there are ongoing costs:

  • Loan repayments

  • Council rates

  • Insurance (home + public liability)

  • Cleaning and maintenance

  • Repairs and wear-and-tear

On the tax side:

  • You can claim deductions for costs related to rental income.

  • If expenses exceed income, negative gearing might apply (i.e., you can offset losses against other income).

  • Capital Gains Tax (CGT) may apply when you sell — but if you hold for over 12 months, you could qualify for a 50% discount.

  • Also factor in stamp duty and land tax.

5. Ready to Move Forward?

If you’re serious about making your holiday home dream a reality — whether for lifestyle or investment — Strat Group (Strategic Investor Group) can help you:

  • Define your property strategy

  • Structure the right financing

  • Evaluate and source the best properties

Get in touch today and let’s start exploring your options.