Should I Buy a Holiday Home Down the Surf Coast (VIC)?

Buying Tips

28 Oct

Should I Buy a Holiday Home Down the Surf Coast (VIC)? A Comprehensive Guide

The idea of owning a holiday home down Victoria’s Surf Coast is a dream for many. With its stunning beaches, laid-back lifestyle, and easy access to natural attractions, the Surf Coast is a popular destination for families, surfers, and anyone looking to escape the hustle and bustle of city life. However, buying a holiday home is a significant investment, and it’s essential to weigh the benefits, costs, and considerations before making a decision.

In this guide, we’ll explore the pros and cons of buying a holiday home on the Surf Coast, factors to consider when making your purchase, and tips on how to make the most out of your investment. By the end, you’ll have a clearer understanding of whether buying a holiday home down the Surf Coast is the right choice for you.

The Benefits of Owning a Holiday Home on the Surf Coast

1. Regular Access to Stunning Coastal Scenery

One of the most compelling reasons to buy a holiday home on the Surf Coast is the chance to have regular access to some of Victoria’s most beautiful beaches. The coastline is famous for its golden sands, rugged cliffs, and great surf, with popular destinations like Torquay, Anglesea, Lorne, and Aireys Inlet attracting visitors year-round. Owning a home here means you can escape to the coast whenever you want, without the hassle of booking accommodation.

2. Potential for Rental Income

Holiday homes on the Surf Coast can be an excellent source of short-term rental income, particularly during peak periods such as summer holidays, long weekends, and special events like the Rip Curl Pro at Bells Beach. Platforms like Airbnb and Stayz make it easy to list your property and generate rental income when you’re not using it. This can help offset the costs of ownership and potentially provide a healthy return on investment.

3. Long-Term Capital Growth

The property market along the Surf Coast has shown consistent growth over the years, with demand driven by its popularity as a holiday destination and an increasing number of people seeking a sea change. As remote work becomes more common, more buyers are looking to relocate to coastal areas, further driving up property values. Investing in a holiday home could result in capital appreciation over the long term, making it a sound financial decision.

4. A Place for Family and Friends to Gather

A holiday home is more than just an investment; it’s a place where you can create lasting memories with family and friends. Whether it’s a weekend getaway, a summer escape, or a festive holiday gathering, owning a home on the Surf Coast gives you a dedicated space to relax, unwind, and spend quality time with loved ones.

5. Tax Benefits and Deductions

If you plan to rent out your holiday home when you’re not using it, you may be eligible for tax deductions on expenses related to the property, such as mortgage interest, maintenance, and property management fees. However, it’s important to consult with a tax advisor to understand the specific benefits and requirements.

Considerations Before Buying a Holiday Home on the Surf Coast

1. Cost of Ownership

While owning a holiday home can be rewarding, it also comes with significant costs. In addition to the purchase price, you’ll need to factor in:

Mortgage repayments
Property taxes and council rates
Insurance (including home and landlord insurance if you plan to rent it out)
Maintenance and upkeep
Utility bills (water, electricity, gas, internet)
Property management fees (if you decide to hire a local manager for short-term rentals)

It’s essential to budget carefully and ensure that the property won’t be a financial burden. Consider whether the rental income will be enough to cover these costs, and have a contingency plan for periods when the property may not be rented.

2. Rental Demand and Seasonality

The Surf Coast is a highly seasonal market, with peak rental demand during summer and quieter periods during the colder months. While you can command high rental rates during peak times, it’s important to consider the off-season and how it may affect your overall rental income. Some towns may have more consistent demand year-round, while others may be busier only during peak holiday periods. Research the rental market in your chosen location to get a realistic view of potential income.

3. Accessibility and Travel Time

One of the key factors when buying a holiday home is how often you plan to use it. The closer the property is to your primary residence, the easier it will be to make spontaneous trips. For example, if you live in Melbourne, properties in Torquay or Anglesea might be more accessible than those further along the coast like Apollo Bay. Consider the travel time and how it aligns with your lifestyle.

4. Property Management

If you plan to rent out your holiday home, you’ll need to decide whether you want to manage it yourself or hire a property management company. Managing short-term rentals can be time-consuming, especially if you don’t live nearby, as it involves handling bookings, cleaning, maintenance, and guest communication. Hiring a local manager can save you time and effort but will reduce your overall income due to management fees.

5. Maintenance and Environmental Factors

Coastal properties often require more maintenance than inland homes due to exposure to salt air, wind, and moisture, which can cause wear and tear. It’s important to budget for regular upkeep, including painting, roof repairs, and garden maintenance. Be aware of environmental factors such as bushfire risk and coastal erosion, and ensure the property is properly insured and protected against potential hazards.

6. Legal and Regulatory Considerations

Before purchasing a holiday home, familiarize yourself with any local regulations regarding short-term rentals. Some councils have restrictions on holiday lets, such as limits on how many days a year a property can be rented out or requirements for special permits. Make sure you understand these rules and comply with them to avoid fines or legal issues.

Popular Locations for Holiday Homes on the Surf Coast

1. Torquay

Overview: Torquay is the gateway to the Great Ocean Road and is known as Australia’s surfing capital. It’s home to famous beaches like Bells Beach and Jan Juc, as well as a variety of cafes, shops, and restaurants. With a thriving community and excellent infrastructure, Torquay is popular for both holidaymakers and those seeking a permanent sea change.
Ideal For: Surfers, families, and those who want a lively beach town with plenty of amenities.

2. Anglesea

Overview: Just a short drive from Torquay, Anglesea offers a more relaxed and family-friendly atmosphere. It has beautiful beaches, scenic walking trails, and is surrounded by bushland, making it a haven for nature lovers.
Ideal For: Families, nature enthusiasts, and those looking for a quieter coastal retreat.

3. Lorne

Overview: Lorne is a quintessential holiday destination known for its vibrant arts scene, boutique shopping, and excellent dining options. With lush greenery on one side and the ocean on the other, it offers stunning scenery and a more upmarket feel.
Ideal For: Buyers looking for a blend of coastal living and cultural activities, as well as a more upscale environment.

4. Aireys Inlet

Overview: Aireys Inlet is a smaller, more laid-back town known for its rugged coastline, beautiful beaches, and iconic Split Point Lighthouse. It has a quieter vibe, making it ideal for those who want to escape the crowds.
Ideal For: People looking for peace and quiet, natural beauty, and a close-knit community.

5. Apollo Bay

Overview: Located further along the Great Ocean Road, Apollo Bay is a picturesque fishing village with a relaxed, laid-back atmosphere. It’s an excellent base for exploring the Otway Ranges and offers stunning coastal and countryside views.
Ideal For: Those who want a more secluded escape and enjoy outdoor activities like hiking, fishing, and exploring nature.

Tips for Buying a Holiday Home on the Surf Coast

1. Research the Area Thoroughly

Each town along the Surf Coast has its own unique vibe, so spend time visiting different locations to see which one best suits your lifestyle and preferences. Check out local amenities, events, and attractions to get a feel for what it’s like to live there.

2. Check for Future Development Plans

Investigate any future development projects planned for the area, such as infrastructure upgrades, new housing developments, or commercial projects. These can affect property values and the local environment, so it’s important to be aware of what’s coming.

3. Talk to Locals and Real Estate Agents

Speak with local real estate agents and residents to gain insights into the property market, peak rental periods, and the pros and cons of living in the area. Locals can provide valuable information that you won’t find online.

4. Consider Your Long-Term Plans

Think about how you plan to use the holiday home in the long term. Is it a place for weekend getaways, or do you eventually want to move there permanently? Your long-term plans will influence what type of property you should buy and how much you should invest.

5. Work with a Local Buyer’s Agent

Navigating the property market on the Surf Coast can be challenging, especially if you’re not familiar with the area. A local buyer’s agent can help you find the right property, negotiate the best price, and ensure you understand all the legal and regulatory requirements.

Final Thoughts

Buying a holiday home down the Surf Coast is a dream that can bring a lot of joy and relaxation, along with potential financial benefits. However, it’s essential to carefully consider the costs, responsibilities, and lifestyle implications before making the investment. Owning a holiday home can be rewarding, but it also requires planning, maintenance, and an understanding of the local market.

If you’re looking for a place where you can escape, relax, and enjoy one of Australia’s most beautiful coastlines, the Surf Coast might be the perfect destination for you. By doing thorough research, budgeting carefully, and seeking expert advice, you can find a holiday home that not only meets your needs but also provides a solid investment for the future.

Craig Nichol