Property Investment Professionals of Australia (PIPA) is urging prospective property investors to keep a cool head when it comes to investing in holiday locations.
PIPA chair Ben Kingsley said it was easy for holidaymakers to fall prey to bad investment decisions over the summer holiday season.
“It’s incredibly easy to start romancing about owning a property in a seaside location when you’re on holiday,” he said.
“You want a holiday there every year and you wouldn’t mind investing in property, so it makes sense to buy, right?”
Mr Kingsley said any purchase needed to be based on good research and number crunching.
“Yes, a holiday house can be a good investment, but like any purchase, it needs to be approached with care – not on impulse and certainly without the influence of emotion.”
Mr Kingsley advised holidaymakers and investors to avoid signing anything while still on holidays and urged investors to engage the services of professionals.
“The romance and bragging rights associated with owning an investment property within a holiday location can fast be forgotten when an investor realises they’ve made a terrible mistake,” he said.