Thought Of Investing In A Holiday Unit in Merimbula?
Thought of investing in a holiday unit in the Far South Coast?
It’s a destination holiday location, with a big increase in visitors during the Christmas holiday season. With an average population of approximately 12,000 in Merimbula, Pambula and Tura Beach it is not uncommon to see the population double over the warmer months. These visitors to our beautiful part of the world are all seeking accommodation. Merimbula is one of the most popular spots with a good number of holiday units available. When considering investing in a holiday unit one of the best aspects is that you can stay in your own holiday accommodation.
You have two options, either a rights managed property with a live-in Manager who maintains the property and manages all bookings, or a residential property that you manage yourself. In the case of the rights managed property you will pay a percentage of bookings to the Manager and possibly other fees and will only be allowed to use the apartment for private use for a set number of weeks a year, usually four to six. Also, you may have to pay a fee to the Manager when you stay in the apartment; we know of one rights managed complex where you actually pay yourself to stay in your apartment, so the Manager is automatically paid the normal booking fee. With a residential property you may elect to use a real estate agent to manage bookings or manage them yourself. You would also need to organise cleaning and re-stocking for each booking. Generally, rights managed holiday unit sales prices are more affordable than comparable residential units.
It’s important to take into consideration the seasonality of tourism to this area when investing and the costs associated with holiday letting, such as consumables and cleaning.
Income you derive from your investment will vary depending on the level of occupancy and the rates you charge. Keeping occupancy at a high level will bring you the best returns. Here are some tips that may help once you purchase your holiday investment unit:
Deals: offer early booking discounts, repeat visitor rates or long stay discount prices.
Extras: offer extras such as complimentary drink on arrival or offers to local attractions and businesses.
Technology: free Wi-Fi, Foxtel, Netflix, SmartTvs etc. can be an added attraction and get you great reviews. The demand for access to this type of technology is growing.
Get feedback: many consumers seek reviews before buying or booking, so encouraging feedback will help get more visitors.
A holiday house or unit is a great way to expand and diversify your investment portfolio, but it can also save you a great deal of cash if you plan on using it for your own holidays.
So if you are interested in exploring an investment property, either for holiday letting or permanent rental, give us a call at Sails and we are more than happy to share our insight on the current market.