Short-term rentals strengthen
Short-term rentals are back in vogue, with holiday homes also getting a look in, according to RE/MAX WA managing director, Geoff Baldwin.
Short-term rentals have been more volatile, due to the nature of their reliance on macro factors, and this recent upturn suggests growing confidence in the economy, said Mr Baldwin.
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“The holiday home market was one of the hardest hit sectors with the economic downturn. However, it is also one of the quickest to recover, hence there are currently some attractive opportunities for investors as the market again heads northwards”, Mr Baldwin said.
Current bookings are higher than they have been since 2007, with enquiries and bookings more than doubling in 2012 after previous weak demand.
Mr Baldwin said this is a sign of people re-visiting discretionary spending.
“For the whole of 2011 the average uptake for holiday accommodation was only 15 percent, or around 52 days, however 2012 has seen this average more than double, indicating people are becoming more open to discretionary spending," he said.
“Normally a well located, fully furnished holiday property will average the same rent in one or two nights as many conventional full-time rentals charge for a full week.
“This lift in demand for holiday rentals will also attract buyers back to that market after it has been pretty much neglected for the past three years.”
He pointed out the areas of Madurah, Yunderp, Bunbury, Dunsborough, Guilderton and Yanchep as value spots for purchasers looking towards holiday homes currently.
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