For people heading off on holidays, Jee Chin, principal of First National JM Chase says to be careful to make sure homes are left safe and secure and to think carefully too, if considering a holiday home purchase.
“Holidays are great times for criminals to get to work if they believe a home is empty. It’s also a time when vacationers ponder their existence as they sit back and enjoy the relaxing lifestyle on offer in popular holiday spots,” Jee said.
“No one likes returning from their holiday to find dead plants, over stuffed mail boxes, or even worse, stolen or broken treasures from a burglary.
“But they do like to think about ways of making the holiday euphoria last longer than the few weeks away.”
Jee Chin said with some careful planning and forward thinking, home owners can find they peace of mind they seek whether they are leaving for vacation or looking for ways to extend it.
“Anyone considering heading off for a well-deserved rest should start now to put some simple, cost effective measures in place for while they are away,” Jee said.
“Unattended homes and cars act as green lights for burglars, which is why it’s important to take as many precautions as you can to ensure you don’t return from your holiday to find you’re a victim of crime.
“Turning on security lights or alarm systems is a great place to start, but the best thing you can do is ask the assistance of a trusted friend, neighbour or family member to collect the mail each day, put out bins at collection times, park a car in the driveway or adjust curtains and blinds.
“This helps give an impression of someone still being at home and deters unfriendly and unwelcome visitors.”
According to Jee Chin, a common trend for people on vacation is to fall in love with the holiday spot and look at purchasing in the area to either move into, or retire to, at some later stage in their lives.
“It is easy to get carried away with the relaxing lifestyle of a holiday home and many people want to either relive this time away, or adopt it as a new way of life,” Jee said.
“But, purchasing a holiday home should only be done after careful planning and consideration of all the factors, beyond the pleasant experience.
“A holiday home purchase comes with some financial considerations such as use or purpose of the home when the owner is not there. These matters have potential long-term impacts and tax implications.”
Holiday homes can attract capital gains tax on the difference between the purchase price and the later sale price, should the decision to sell ever arise.
“However, many holiday home owners neglect to expand their purchase cost base by adding the expenses involved with holding the property, including council rates and water bills, major extensions or repairs, strata levies, garden maintenance and interest on mortgage repayments,” Jee Chin said.
“This can reduce the taxable component of the sale by many thousands of dollars, which is why it is important to ensure you keep all receipts for any expenditure on the house, including legal fees, stamp duty and any other costs relating to the purchase.”
Jee Chin advises when looking to purchase a holiday home, to approach it in the same way you would any property investment and make sure it is in the right location.
“A holiday home may also double as an investment property, given it is vacant for most of the year,” Jee said.
“So it is important to ensure it is close to transport or employment opportunities, especially if it is in regional areas, otherwise it will be less desirable as an accommodation option for renters.”
