With the warmer weather now in arms reach, if you’re anything like us you’ll be dreaming of the classic Kiwi summer ahead. Days full of sunshine at the beach, or lake, with family and friends, long days fishing or perhaps camping in the great outdoors. No doubt whatever your summer style is, there’s bound to at least include one classic Kiwi sausage sizzle!
What if we told you that this summer dream could be enjoyed all year round and investing in a holiday home might just be your perfect gateway to both relaxation and financial growth?
Let’s walk through some of the considerations when tossing up whether to invest in your very own summer oasis.
Mortgage options
The first step in securing your dream holiday home is to understand what kind of property you have your heart set on and also what you are able to afford.
Performing some market research is always recommended at this stage as well – to not only get an idea of what property is out there, but importantly to understand what realistic price brackets you may be looking at. Similar to hunting for a house, you’ll want to build a list of non-negotiables vs nice-to-haves, all of which keep in mind your financial budget.
From here, exploring your mortgage options to understand how you’ll finance this holiday home is your next step. Utilising a free tool, like our mortgage repayments calculator, can be helpful to understand how much home finance you may require. A mortgage adviser is also recommended to help you secure the best home loan that fits your personal requirements and financial situation. Funnily enough, Mortgage Sure can help you here 😉
Insurance considerations
Protecting your holiday home is paramount. As we know, natural disasters (e.g. earthquakes, floods) can strike at any time, meaning your holiday homes can face environmental challenges and comprehensive insurance coverage is essential. Consider not only structural insurance but also specialised holiday home insurance that accounts for potential seasonal rental arrangements. Insurance experts can guide you to ensure your property and investment are well-covered and Mortgage Sure can connect you to contacts in this field.
Potential income return
Maximising the return on your investment can make owning a holiday home financially rewarding. Many Kiwis choose to rent out their holiday homes during peak seasons to offset costs and generate income. There may even be seasonal workers that require accommodation in the area during the quieter months. Assess the potential rental income by researching local demand and seasonal fluctuations in the rental market specific to the area you’re looking to buy in. A well-managed rental property can not only cover your mortgage but also contribute to your overall financial portfolio.
Investing in a holiday home in New Zealand can offer both personal enjoyment and long-term financial benefits. But before you take the big leap, consider embarking on this journey with confidence by consulting a trusted mortgage adviser that can guide you through finance options, insurance considerations, and strategies for making the most of your investment.
While we’re home loan experts, our blog posts are for general information purposes only and are not intended as financial advice. If at any stage you need personalised advice, get in touch on 06 8788 4444 or Ben or Mark.
