The pandemic has had an interesting effect on property in some parts of Australia.
Here on New South Wales’ Central Coast, we’ve seen a significant upswing in buyer interest across all classes of property – in particular with rentals, first homebuyers and prestige property.
But what has been most interesting is the knock-on effect to holiday homes, with people now purchasing a second home on the Central Coast which they rent out in between using it themselves.
The holiday rental arm of my business – Belle Escapes – has tripled in the past 12 months to around 100 holiday homes and they were fully booked over summer as Australians holidayed at home amid border closures and travel bans.
While widespread overseas travel is expected to be off the cards for another year or so, even when borders reopen, buyers are still expected to be reap the rewards of a good investment with interest rates at an all-time low.
Here are seven reasons why a weekender is a great investment and why the Central Coast is one of the best places for property investors to buy.
- Because people can’t travel internationally, they are looking closer to home for their holidays. Most of the holiday homes rented through Belle Escapes Central Coast are booked several months ahead of time. Investors are therefore more comfortable investing in holiday houses whilst there’s this guaranteed return.
- The Coast is home to an array of holiday homes in myriad locations and in all shapes and sizes but whatever the weekender, it can make decent returns as a holiday home. Top end holiday homes can earn up to $250,000 per year, with entry-level cottages bringing in around $40,000 per annum.
- The Central Coast has always been a sought-after destination but with the influx of Sydneysiders, the region is evolving at a rapid pace. The Coast is home to celebrity chefs, hatted restaurants, wineries, gin distilleries, small bars – you name it, we have it, only with less traffic, more space and probably a view to boot. With every new cafe, restaurant, boutique and gallery opening, the Coast is becoming an even better place to live and visit. Like the Hamptons is to New Yorkers, it’s the place to be for chic city slickers.
- People are starting to recognise that the Central Coast’s natural beauty and burgeoning dining scene isn’t the only reason it’s a great spot for a holiday home, the region is extremely well located. Without any traffic, Gosford is just over an hour from the Sydney CBD – that is closer than Leura in the Blue Mountains or Wollongong. The new Northconnex motorway is saving motorists about 15 minutes overall, alleviating pressure on Pennant Hills Road, one of the state’s most congested highways.
- Byron Bay might be the hottest property market in Australia right now and where anyone that’s anyone wants to be but it has also become saturated and over-priced. Of my last 90 property sales, 75 buyers were holiday house investors and many shared a similar tale. After finding it difficult to buy in Byron they decided to look somewhere that shared similar natural attributes and a similar laidback lifestyle, such as the NSW Central Coast, which also offered an added bonus of being a stone’s throw from Sydney enabling them to enjoy the weekender more frequently.
- Home buyers like having a dual living option to consider for the future. COVID has made people more conscious of their lifestyle needs, and now see home life closer to the coast as an inspiring alternative to Sydney suburbia or Sydney city. A weekender doesn’t always have to be a weekender. Buying an investment property is a great way to get a foothold in an area that may one day become home.
- While the affordability factor is still reasonable in comparison to Sydney, now is the time to get in before interest and prices surge even more. We recently advertised a Terrigal acreage and received 220 inquiries in the first 24 hours, 40 inspections on the opening weekend and issued a couple of contracts almost immediately. Most interested parties were looking for a weekender investment.
For more information visit Belle Property Central Coast