Sun & Profit | Investing in Holiday Spots

Imagine yourself in a villa with the Great Barrier Reef just a stone throw away. Nice sun and sandy beach – how nice would it be? Many investors gets emotional with this and thought to themselves, “If I like this place, surely someone else is going to love it. And then surely, there would be many of them who would race to rent a place in this spot. What a great opportunity to invest!” With this thought process in mind, they go ahead and start investing in holiday spots. Financial Review Smart Investors asked Ben to explain what are the popular holiday spots in Australia for property investment and why it require a lot more research than others. Here’s a snippet of the article:

“If you’ve spent time sitting on a deck staring at the ocean recently and are now thinking how fabulous it would be to own your own place there, you’re not alone.

It’s that time of the year when people start dreaming of having their own weekender – or even to live in paradise permanently. But before you let the summer sun and holiday spirit seduce you, make sure you are buying with you head and not just your heart. There are plenty of examples where Australia’s iconic holiday destination have been anything but rewarding for investors. It is easy to fall in love with many parts of the country but mixing investments with personal aspirations doesn’t always make sense.

Property Investment Professionals of Australia chairman Ben Kingsley explains: “You have got to have an honest conversation with yourself in terms of the opportunity cost of investing in a lifestyle or resort-type location.”

A lifestyle decision may be one where capital growth and rental return are deliberately put aside just to have a place near the sea you can enjoy when you want.”

Click on the article to read more!