6 January, 2023 / Category: Blog
A quick getaway to a beachside rental is heavenly. Imagine if you could own your getaway and use it all year round. Maybe this dream is within reach, and you didn’t even realise…
While many Melbournians escape inner Melbourne to enjoy seaside getaways this summer, we look at how you could own your own holiday house.
One thing to remember about the Mornington Peninsula is that it is vast, with many beautiful beaches to suit different budgets and needs. You don’t have to be a millionaire to own a slice of this stunning part of Victoria. We asked our new Mornington Peninsula specialist and resident, Eleisha Doherty, to share her thoughts on securing your own holiday house without breaking the bank.
With rising popularity and demand for short-term rentals, there is now an opportunity for people to own a holiday house that may have previously been unobtainable. During peak holiday seasons properties in the Mornington Peninsula area are often fully leased at record rental prices. Combine this with strong property investment fundamentals and owning on the Peninsula may be more affordable than you first thought.
There is also the option of buying in today and renting the property long-term to pay down the mortgage, allowing for you to hold the property until you can use it for yourself down the track. The Peninsula has a significant deficit of long-term rentals, underpinning demand and rising rental rates in the short and long term.
To show you how short-term renting could make a holiday house a reality for you, we have looked at two case studies in Somers and Blairgowrie, outlining the property’s investment fundamentals and its potential January rental rates.
Overview: This gorgeous 800m2 property promises a relaxed lock-and-leave lifestyle by the coast. Walking distance from the beach and the General Store, it ticks all the boxes for a memorable holiday.
The investment fundamentals: The property was sold in May 2022 for $1,530,000. Over its lifetime, it has achieved capital growth of 11.52%p.a. (or 12.3%p.a. since it was last purchased in 2018).
Short-term rental (January only): The property is forecast to achieve an average rental of $914* per night in January with an occupancy rate of 90%. Based on this, the property would generate $25,500 in rental income, less a 20% management fee would leave you with an income of approximately $20,400 for January. Then you can enjoy the luxury of your own holiday house for the rest of the year.
Overview: Situated only 900m from Blairgowrie beach and on 690m2, this modern three-bedroom seaside getaway makes the ideal holiday house.
The investment fundamentals: The property was sold in August 2022 for $1,205,000. Over its lifetime, it has achieved capital growth of 15.15%p.a. (or 14.87%p.a. Since last purchased in 2014).
Short-term rental (January only): The property is forecast to achieve an average rental of $1,250* per night in January with an occupancy rate of 90%. Based on this, the property would generate $34,875 in rental income, less a 20% management fee would leave you with income of approximately $27,900 for January. Then you can enjoy the luxury of your own holiday house for the rest of the year.
If you’re thinking of buying or selling on the Mornington Peninsula, contact Eleisha today to book a free 15-minute discovery call. We can advise you on the best timing for your specific circumstances, as well as the best areas and property types to look at.
*Based on average rentals with similar features and location.