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The summer weather is in full swing in Australia, and it’s around this time that many Aussies start thinking about investing in a holiday home.
After all, a holiday home can seem like a great way to have rent-free holidays whenever you want.
Ideally, you’ll also be able to easily rent out the holiday home to help offset maintenance costs.
The problem is that property price surges around the country make it difficult to secure something in a good location without breaking the budget.
Today’s national median property price is $809,849.
But the good news is, there are some much more affordable areas to look at which may meet your financial and holiday requirements.
The problem is that current property price levels mean finding a property anywhere in Australia for under $700k isn’t an easy task.
But it’s not impossible if you know where to look.
Here, I’ve put together a list of 5 areas that allow any savvy investor to find a holiday house for a relatively low price, whilst also offering the potential for your property to appreciate in value over the years.
1. Esperance, WA – $462k
If your budget is on the smaller end of the scale, Esperance might be just what you’re looking for.
While house prices in the area have surged from their $320,000 median just three years ago, the area is still priced relatively cheaply.
The median price for houses in the suburb is now around $462,000, a price unheard of in many other areas of Australia.
Located on the south coast of Western Australia, Esperance has established infrastructure and undiscovered opportunities.
Esperance is known for its calm beaches; Blue Haven and West Beach.
In the nearby Cape Le Grand National Park, Lucky Bay beach is said to have the whitest sand in the world.
Hence, Esperance could make for a great summer getaway.
2. Mission Beach, QLD – $545k
Mission Beach, located in Far North Queensland, is famous for its tropical beaches, rainforests, and adventure activities.
The area is a gateway to the Great Barrier Reef, making it popular for holidaymakers who like to snorkel, dive, or explore marine life.
Mission Beach also boasts World Heritage-listed rainforests, with walking trails where visitors can immerse themselves in the region’s unique flora and fauna.
The median house price in the area has grown 1.1% over the past 12 months to $545,000, which is much lower than many regional locations in northern Queensland
3. Venus Bay, VIC – $567k
Venus Bay, located on the South Gippsland coast of Victoria, is known for its unspoiled natural beauty, surf beaches, and relaxed holiday atmosphere.
The nearby Cape Liptrap Coastal Park offers walking trails, coastal views, and opportunities to spot native wildlife.
The suburb is a popular destination for tourists and seasonal residents who are looking for a peaceful retreat away from city life.
The median house price in Venus Bay is $567,000.
4. Nambucca Heads, NSW – $659k
Nambucca Heads, located on the Mid-North Coast of New South Wales, is renowned for its stunning natural beauty, relaxed coastal vibe, and outdoor activities.
The town is known for its rich cultural heritage, pristine beaches, bushwalking and wildlife and the crystal-clear waters of the Nambucca River are popular for fishing, kayaking, and boating.
Known for its laid-back lifestyle, Nambucca Heads attracts retirees and holidaymakers, and it is also a popular stopover for travellers travelling the Pacific Highway between Sydney and Brisbane.
The median house price in Nambucca Heads is $659,000, making it a great option for investors looking for a holiday home in a high-demand holidaying area.
5. Launceston, TAS – $700k
Launceston, Tasmania’s second-largest city, is known for its blend of natural beauty, historic charm, and popular food and wine scene.
The city is home to Cataract Gorge, a stunning natural reserve just minutes from the city center, featuring walking trails, a suspension bridge, and the world’s longest single-span chairlift.
The surrounding Tamar Valley is one of Tasmania’s premier wine regions, known for producing exceptional cool-climate wines.
The city is a more affordable option compared to Tasmania’s largest city, Hobart, with a median of $700,000, which puts it right at the top of our range.
Some reasons not to buy a holiday home
While a holiday home might seem like an appealing option that can give the best of both worlds, it’s also important to consider the cons of such a large “investment.”
The times you’ll want to use your holiday home might also be the only times it’s easy to find a tenant, making it difficult to offset ongoing costs.
Plus, going to the same location over and over might leave you bored of your home location.
Hence, it’s important to make sure that buying a holiday home will meet both your long-term lifestyle and financial goals.
And of course, these locations are cheap for a reason and I’d like you to keep underperforming over the long-term.
Of course, if you want a holiday home by a holiday home in these locations but don’t think that it will be a good investment.
