Pricey holiday home rentals can be halved staying at nearby affordable alternatives
It's summer time, so longingly looking into estate agent window displays for shacks or palaces for sale or rent up and down the coast has been property pursuit of many.
Recent research puts Portsea and Sorrento on top of the nation’s list when it comes to weekly median holiday rentals.
The holiday homes on Victoria’s Mornington Peninsula typically get rented to holiday makers for around $3,150 a week.
But just a few kilometres down Point Nepean Road at Rye, the vacation prices are far less expensive with seven nights for around $1,900. Even cheaper at Rosebud.
Broadbeach's $2,325 rental on the Gold Coast can be halved at Coolangatta at around $1,085, PRDnationwide research analyst Harrison Hall said.
“For those looking at Sorrento you can expect to pay 60% less in nearby Rosebud ($1,260),’’ he told The New Daily.
The research found Sydney's northern beaches have a $2,380 weekly median holiday rental, the much higher prices paid in the often-secretative Palm Beach precinct not included in the survey.
The survey, after combing online holiday house rental portals, reported on the areas across Australia where PRD have previously undertaken its extensive property research.
| State | $ Median Nightly Rate | $ Median Weekly Rate | |
| VIC | Portsea/Sorrento | 449.5 | $3,146.50 |
| NSW | Northern Beaches | 340 | $2,380.00 |
| QLD | Broadbeach/Mermaid Beach | 332.5 | $2,327.50 |
| QLD | Sunshine Beach | 331 | $2,317.00 |
| NSW | Avoca Beach | 297 | $2,079.00 |
| QLD | Noosa Heads | 285 | $1,995.00 |
| QLD | Hope Island/Sanctuary Cove | 280 | $1,960.00 |
| VIC | Rye | 271 | $1,897.00 |
| VIC | Lorne | 244 | $1,708.00 |
| QLD | Coolum | 240 | $1,680.00 |
| NSW | Byron | 240 | $1,680.00 |
| WA | Margaret River | 232.5 | $1,627.50 |
| QLD | Burleigh Heads/Currumbin | 230 | $1,610.00 |
| VIC | Torquay | 225 | $1,575.00 |
| QLD | Mooloolaba | 219.5 | $1,536.50 |
| SA | Aldinga | 214.5 | $1,501.50 |
| NSW | Jervis Bay | 205 | $1,435.00 |
| VIC | Anglesea | 200 | $1,400.00 |
| NSW | Mollymook | 200 | $1,400.00 |
| SA | Maslins Beach | 200 | $1,400.00 |
| TAS | Freycinet (Coles Bay) | 195 | $1,365.00 |
| QLD | Noosaville | 190 | $1,330.00 |
| WA | Scarborough | 190 | $1,330.00 |
| QLD | Surfers Paradise | 185 | $1,295.00 |
| SA | Glenelg | 185 | $1,295.00 |
| QLD | Peregian Beach | 180 | $1,260.00 |
| VIC | Rosebud | 180 | $1,260.00 |
| NSW | Port Stephens | 180 | $1,260.00 |
| NSW | Coffs Harbour | 177.5 | $1,242.50 |
| QLD | Bribie Island | 175 | $1,225.00 |
| NSW | Kingscliff | 170 | $1,190.00 |
| SA | Robe | 170 | $1,190.00 |
| NSW | Batemans Bay | 167.5 | $1,172.50 |
| QLD | Alexandra Headlands | 160 | $1,120.00 |
| NSW | Eden | 160 | $1,120.00 |
| QLD | Coolangatta | 155 | $1,085.00 |
| NSW | Merimbula | 150 | $1,050.00 |
| WA | Cable Beach | 150 | $1,050.00 |
| NSW | Port Mac | 140 | $ 980.00 |
| NSW | Yamba | 110 | $ 770.00 |
| NSW | Hawks Nest | 93 | $ 651.00 |
Source: PRDnationwide
Affordable NSW country costal holiday accommodation included Hawks Nest, 225 kilometres from Sydney, with a median seven-night stay costing $650.
In South Australia, a week-long stay in the coastal, Robe will cost about $1,190.
In Western Australia's Margaret River holiday makers face a median weekly rental of $1,625.
At Cable Beach in Broome, the cost is $1,050.
Freycinet (Coles Bay) in Tasmania will cost $1,365.
The research combined pricing of all holiday accommodation including apartments, houses and units.
Last year Pitcher Partners partner David Staples, compiled an analysis, counselling would-be buyers to do their sums.
“It’s generally a lifestyle choice rather than an investment,” he suggests.
And of course renting out to others at the peak holiday times, is necessary for tax deductability.
For many holiday home owners, it's almost a home-from-home with the eventual savvy sea change shift less stressful than for everyone else.
Many coastal property owners complain that they spend all their time fixing up and maintaining their holiday homes, especially those in close proximity of the sea.
Rental returns in many coastal spots can cover most costs - maybe all up around eight weeks a year with demand then plummeting during winter which is when the owner can enjoy those blustery southerlies.
Typically you'd expect it to provide a net annual yield of no more than 2 per cent, even if commanding weekly rents of $2000 or more in peak periods.
Ofcourse there's always the chance of using the income for a quick ski at Whistler while the tenants are swatting away the beachside blowies.
Beware the expectations of holiday guests has risen in recent times so household items once considered extras such as air-conditioning, a dishwasher and a modern gas barbeque are now viewed as essential.
Maybe even the Nepresso machine given anyone can gets the capsules at the local supermarket..
According to David Staples from the accounting firm Pitcher Partners, the money spent on an average holiday house could pay for more than one week a month – or about 90 days a year – in a quality hotel.
Land tax on a holiday house can be a massive burden, particularly in pricey areas on the Mornington Peninsula and on Sydney’s northern beaches.
In these areas, annual land tax on a holiday home can amount to tens of thousands of dollars.