The holiday House Is A Lifestyle Choice

The holiday house purchase decision: emotional or logical?

You’ve just spent two glorious weeks at the end of January at your friends beach side holiday house with your young family. The stress of the past years hard work has vanished and you’re feeling great. You’ve reconnected with your partner and your five and eight year old’s have been reacquainted with a parent.

Its about the worst time possible to make a rational investment decision but you decide that you should buy your own holiday house, now. A couple of hours drive from home, so that you and the family can recreate the bliss of the recent holiday every weekend.

Some holiday house reality

Before you make what for most people is a very significant expenditure, lets inject a dose of reality to this emotionally charged thinking. Some hard-nosed considerations include:

* Unless the property is available to rent (on commercial terms), you are unlikely to be able to claim tax deductions for maintenance costs and interest on any loan to purchase the property;

* Assuming the holiday house is not considered your principal residence, it will be subject to capital gains tax on sale;

* Unless you employ people to maintain the property and bear the additional expenses, many of those blissful weekends will be spent doing chores;

* When children are relatively young, organizing weekends away is easy. But once sporting and other alternatives emerge, it becomes increasingly difficult for the family to go to the holiday house during school term;

* Rental returns are highest during school vacations. But once your children are in secondary school, it may be the only time the family is able to use the property; and

* Last, but not least, because of the money tied up in the holiday house there may be a reluctance to go anywhere else for holidays. But the appeal will almost certainly wear off for some members of the family, particularly for teenage children who have cooler things to do on weekends than to go to the holiday house with mum and dad.

The holiday house is a lifestyle choice

Holiday houses, like boats and hobby farms, are lifestyle assets. You should not consider them as serious investments. The reality is that they are highly likely (but not guaranteed) to turn out to be poor choices compared with more appropriate investment alternatives available at the time of purchase.

Ahead of the purchase decision, a holiday house does not tick off on what we would consider best investment practice (see Foundations of Financial Economics). In particular, more often than not it exacerbates an already concentrated (and, perhaps, geared) exposure to residential property that comes with ownership of an existing family home.

However, this does not mean we think it never makes sense to buy a holiday house or any other lifestyle asset. Rather, we would encourage you to look at the potential consequences of the purchase for other objectives that may be important to you.

For example, if a detailed analysis suggests that that the purchase of the holiday house is likely to delay your plans for retirement for five years then you are then in a position to more sensibly weigh up the benefits and costs and make a sound decision.

Alternative and, perhaps, better ways to obtain the perceived lifestyle benefits of the holiday house may also become apparent if the decision is considered in a bigger picture context.

After doing the analysis and considering the alternatives, the decision may be to purchase the holiday house. You can take comfort that you made it with your eyes wide open, rather than as a knee-jerk response to a recent positive lifestyle experience.

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Enjoy Your Holiday House Rentals At Your Favorite Location

It is a little daunting task to search holiday house rentals; it is probably seen that house is not available when you need or owners charge hefty amount to exploit the opportunity. So what is the option available for you? At the time of online shopping and online house booking, you can access an affordable apartment from the huge number of online new homes listings. You can buy it for both short terms as well as for long terms as per your requirement. The internet facilitates all relevant information to the potential buyers interested to book holiday homes for rent in Australia or New Zealand.

There are a number of websites offering thousands of holiday homes along with full descriptions and details. Such online services are highly interactive by which customers can find help related to specific locations. Those who search holiday house rentals online will be asked to fill up all details to view the properties. With the help of these online sites, you can find home in Queensland new house listing or in other provinces in no time. Such sites also exceed customers’ expectation and guarantee positive home buying experience.

In this way, the vacation can be a special experience if you have opted for a vacation home rental at your favorite destination. You can purchase a traditionally designed home in Perth, or stone cottage in the highland of Darwin, or a condo or apartment in the Melbourne; it is available in the new house listing of the country. Customers can also get properties that can easily accommodate single person or the all family members. As far as amenities are concerned, you are open to choose according to your requirement of size and location.

Many house owners are using these new house listing sites to the visitors under the facility of vacation home rental scheme. Some people look for the extra space to live with whole family, whereas some are interested in the one or two room apartments to spend their vacation time. If you are interested to buy large apartment but do not want to afford all expenses then the option of likeminded flatmate is suitable for you. You confidential information will not be leaked and your identity for holiday homes for rent would not be accessible unless you give your permission.


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