NSW central coast IP holiday rental

[b simpson]

Starting from umina to say the entrance where do people think would be a good place for a holiday rental? I wanna rent it out to others, but also use it myself a few times a year. Most of my previous holidaying has been south coast so I have little knowledge of central coast.

I'm preferring something under $400k which buys an old but good condition house on a 500-600m2 block not too far from beach and shops.

Umina looks good to me. I realize that people stereotype it but it ticks many boxes including close to train station for future capital growth.

To be honest, the only real issue I have with umina is a personal one that the surf has no waves!!! Not really an investment decision, but for me a holiday house isn't complete without a surf beach nearby.

But the two most important things are popularity for holiday rental of a house, and not somewhere likely to be short changed in the capital growth area.

 

[Propertunity]

Starting from umina to say the entrance where do people think would be a good place for a holiday rental?

Avoca, Terrigal, Copacabana, McMasters etc

I'm preferring something under $400k which buys an old but good condition house on a 500-600m2 block not too far from beach and shops.

This budget is going to seriously cramp your style!

Are you looking for CG or yield? .....or just a place to holiday yourself (at times when you can't claim the expenses - since it is private use)

 

[b simpson]

I'm looking to try to keep the holding costs down while having a place I can use maybe 3 weeks a year. Neutral cash fow with CG would be ideal but I'm not sure that would be possible with a short term rental. Could go higher in $$'s but am a bit concerned about owning a $500+k property and relying on holiday makers for cash flow.

I have some useful contacts to use for marketing a good holiday property.

Im assuming for a holiday rental it needs to be somewhere that has a popular name, ie the entrance, avoca, terrigal, ettalong, umina. All those places are well known by sydney siders.

I have spent the last few days from shoal bay heading south checking out places as my first stage of research Port Stephens, while a beautiful place is probably too far north for my liking. I didn't like the entrance personally, umina seems very unappreciated by others.

I'm currently at terrigal and this place is really cool. I can see why it is more $$$.

Once I decide on a location and strategy I'll have a holiday here. Probably won't buy here till next year as I have my eye on a different property ATM.

Thanks in advance for any advice

 

[b simpson]

Maybe for neutral CF in a good area I should investigate units?

I much prefer houses for the available space but it would be a hell of a lot easier to get a unit in a walk to beach/shops location such as terrigal or avoca.

 

[Propertunity]

Probably won't buy here till next year as I have my eye on a different property ATM.

It will be next year in approx 4 week's time.

Thanks in advance for any advice

Yields in almost every deal I've seen (and I get to see a LOT) wouk out to almost exactly the same, within a fraction of a % point, for permanent let Vs holiday let.

By the time you get your 6 weeks worth of huge rents at peak periods, and account for vacanices and lower rents off-peak = almost the same as a permanent tenant on a (much) lower, but market, weekly rent.

 

[devank]

at times when you can't claim the expenses - since it is private use

How would anyone else know that you are using it?

Are there any difference in type of mortgage for holiday IPs? How about the insurance?

This can work if we can make use of the place during off-peak period. May be I'll consider it in 20 years time

 

[ali]

Noraville north to Catho if you want good waves without the Terrigal/Avoca pricetag. Great stretch of surfing coast without the crowds that plague the point and reef breaks further south.
Cheers, Ali

 

[Propertunity]

How would anyone else know that you are using it?

Being an honest person, I'm sure you'd want to comply fully with the Tax Laws of this great country. Why would you want to take the risk?

Are there any difference in type of mortgage for holiday IPs?

Nope.

How about the insurance?

Yes, probably - but your are probably insuring lots more contents for a holiday let.

 

[devank]

Being an honest person, I'm sure you'd want to comply fully with the Tax Laws of this great country..

Absolutely not. Noting is worth getting into trouble with any authorities. Simply interested in knowing the audit process.

 

[b simpson]

It will be next year in approx 4 week's time.

Yep, sure will. I am looking at another property at the moment so if I buy that one I would have to wait till probably April before I can buy again. I may skip this other property though still deciding...

I work FIFO in from Sydney to remote western Australia. When I am at work (26 days) I cannot look at any properties except for on the net.

One of my problems is where do I stay when not at work? It is a waste of cash to rent or have a PPOR and use it only 9 days out of 35! Currently I stay with my parents which is not ideal. I am single.

If I get a holiday rental I can use it throughout the year in the off peak times, and get some premium rent during busy periods. Therefore this needs to be somewhere near the coast so I can chill out and enjoy the beach. I won't be commuting anywhere but one of my strategies is to buy near public transport as in 10 years time that will be crucial to where people will want to live.

Yields in almost every deal I've seen (and I get to see a LOT) would out to almost exactly the same, within a fraction of a % point, for permanent let Vs holiday let.

That sounds promising. I want it to be close to cash flow neutral cause I don't wanting to put my hand in my pocket each week too much. I'm on a high tax rate so deprication would be benefictual, maybe build a new GF? Choosing a location is a very difficult decision. Walk to beach is something that I would like.

I even looked at Bondi to Maroubra and also Cronulla. Those places would probably get a good holiday rental so would suit. Also there would be worse places for a bachelor pad than Bondi . 1 bed 1 car is north of $600k... still possible if it was cash flow neutral but that would be unlikely on 95% loan. I hate auctions also...

The reason for a house over a unit is I could leave some clothes in a lockup wardrobe there for my use. I could also invite a heap of friends over on my time off. Future development of the block, such as villa, GF or duplex is also very appealing to me.

Assuming work goes well I will buy 2 or more places per year. I just need to decide which ones first. Umina still appeals to me as having good potential and also public transport, but it is probably not as good a place for a bachelor pad as say Bondi or Terrigal. Too many family's at Umina for that.

Such a long drawn out post, but hopefully people understand my situation...

 

[china]

Umina is not a place for Sydney holiday makers. The area is full of skankies that anyone who wants to pay big $$ for holiday rental would be put off. It is also quite debatable as to how good CG Umina will achieve over time. The private hospital in Umina has recently retrenched half its staff and there are many vacancies on its retail strip. All in all, not good for holiday home investment/rental.

 

[b simpson]

Umina is not a place for Sydney holiday makers... All in all, not good for holiday home investment/rental.

OK, so if I reduced the requirements somewhat, where would be the best CF for either a holiday rental house or unit on the central coast under $500k?

My preference would be for a house but if the numbers don't stack up a unit would be fine. Perhaps a low maintenance unit in Terrigal with depreciation benefits might be the way to go?

 

[china]

OK, so if I reduced the requirements somewhat, where would be the best CF for either a holiday rental house or unit on the central coast under $500k?

My preference would be for a house but if the numbers don't stack up a unit would be fine. Perhaps a low maintenance unit in Terrigal with depreciation benefits might be the way to go?

For 500k, You would be looking at some old unit in Terrigal or Avoca Beach. Not much depreciation but hopefully good CF especially if you can maximise holiday rentals. A beachfront or good water views should carry potential of capital growth over time. Something such as:

http://www.realestate.com.au/property-unit-nsw-avoca+beach-111598139