When it comes to buying a property in a holiday destination there are several factors to consider. I have many clients with Byron Bay home loans and Gold Coast home loans. However not all of their properties are in the heart of the holiday hub. Buying in the holiday zone will see the prices of property higher then the rest of the town. You will also see more buildings and apartments in holiday hot spots.
What to look for in a holiday town?
Firstly you need to consider what are you purpose of buying in this area?
- To live in (you love the area and facilities)
- To rent out as a holiday property with short-term rentals
- To rent out long term as a long term rental
- As a home away from home for yourself
The option you choose will impact your loan application. The use of the property will impact your borrowing capacity. For example lenders are very strict when using short-term rental income. You might also have cashflow issues when purchasing as a home away from home.
Other issues that might arise will be lenders having restricted LVR’s in the holiday areas. This might mean that you need a larger deposit.
The best thing to do if you are thinking of getting a Byron Bay Home Loan or a Gold Coast Home loan or any holiday destination is to give us a call and we will go through all the details with you.