Thinking of Buying a Holiday Home in 2025? Here’s What You Need to Know
Holiday Homes Are Back in the Spotlight
With hybrid work, lifestyle shifts, and a renewed appetite for regional escapes, holiday-home investments are booming again in 2025. But before you dive in, it’s essential to take a step back and assess the opportunity with a clear head—and a sharp eye for returns.
At CBM Mortgages, we’ve seen a rise in enquiries from buyers looking to secure a coastal or country retreat. But not all holiday homes are created equal. So, how do you make sure your investment stacks up?
Location Is Everything
Why Location Can Make or Break Your Investment
When it comes to holiday rentals, location is king. A stunning home in the wrong spot can sit empty for weeks, while a modest unit in a high-demand area can generate consistent income.
Here’s what to consider:
- Travel time and accessibility – Is it within a few hours’ drive of a major city?
- Local attractions – Beaches, wineries, national parks, or festivals can boost demand
- Rental rates and occupancy trends – Check seasonal fluctuations and average nightly rates
- Council regulations – Some LGAs now cap short-term rental days (e.g. 180 days/year in parts of NSW and VIC)
For more insights, check out this 2025 holiday home investment guide outlining the latest trends and policy changes.
Do Your Homework Before You Buy
Avoid Emotional Decisions
It’s easy to fall in love with a property that feels like a dream getaway—but remember, this is an investment. Ask yourself:
- Will this property appeal to holidaymakers year-round?
- Is the area oversupplied with similar rentals?
- What are the ongoing costs (maintenance, cleaning, insurance)?
Get Expert Advice
If you’re not a local, it’s wise to speak with professionals who understand the area’s rental dynamics. At CBM Mortgages, we help investors:
- Assess borrowing capacity for second homes
- Understand tax implications and lending rules
- Navigate short-term rental regulations
You can also explore our case study on avoiding settlement penalties to see how expert guidance can save you time and money.
Is a Holiday Home Right for You in 2025?
Holiday homes can offer:
- Lifestyle flexibility – Enjoy your own retreat and rent it out when you’re not using it
- Rental income – Offset mortgage and maintenance costs during peak seasons
- Long-term capital growth – Especially in tightly held coastal or regional markets
But they also come with risks—seasonal demand, regulatory changes, and higher upfront costs. That’s why it’s crucial to get the right advice before you buy.
Let’s Talk Holiday Home Finance
Thinking about investing in a holiday property? We’re here to help you weigh up the pros and cons, explore your loan options, and structure your finance for maximum return.
Call us today on 02 8068 0534 or visit CBM Mortgages to get started.
Further Reading:
- Is my bank giving me a good deal
- Vacation Home Trends in 2025 – Cockatoo
- First Home Buyer Grants – Revenue NSW
- Are you looking for mortgage broker in Manly
Disclaimer:
The information provided in this article is for general guidance only and does not constitute financial or tax advice. It does not consider your personal circumstances. Before making any financial decisions, seek professional advice from a licensed mortgage broker or financial consultant. This content is protected by copyright laws and may not be modified, reproduced, or republished without prior written consent.
Written by Craig McDonald 15/06/2025
