Buying a holiday home isn’t just the Great American Dream — it’s also Australia’s.
Just one house isn’t enough anymore. Families invest on acre blocks to build their holidays by the sea or wherever nature is closest. Studies report that one out of 40 families (or 560,000 Australians) already own a holiday home.
It might be your dream, too. But before you dip your toes on the market, you ask: when is the right time?
Out of Season — Always an Option
Majority of Sydney’s seasoned realtors would recommend buying a second home out of season. Homes located in holiday areas aren’t just recurring — these are also seasonal. Prices will increase during peak seasons; these only fall back when the tourists are gone.
The demand stems from a number of Australians who go away for the holidays and fall in love with the houses. When you place a deposit, it’s a form of marriage proposal. But as prices rise and fall according to seasons, don’t just deposit ASAP.
When you buy out of season, you’ll have less competition and more time to think about your decision.
A Flat Market is the Best Market
Houses in holiday areas are more expensive compared to others, but they are also more volatile. In simpler terms, good times equate to booming prices while hard times guarantee a collapse.
The collapse occurs when people deal with long-term loan repayments and they use their holiday home. During recession, it’s common to see multiple houses for sale. For this reason, it’s important to hunt for a second house during a market’s flat line. It’s easier said than done, but high markets pose risks.
Are You Ready?
The suitable time to buy a home is when you’re ready—emotionally and financially.
It’s easy to get caught up with the rush of the holidays. Letting emotions control your decisions, however, doesn’t always guarantee a good sale. Even if a second home sounds like a good investment, consider your financial standings first. Can you afford the charges that come with another house?
Holiday houses are good investments — it builds you financially and strengthens family bonds. But there’s always a right time (and right way) to do it.