How You Can Afford a Million-Dollar Beach Holiday Home in Australia
March 14, 2023 • Co-Ownership 411
To own a million-dollar beach holiday home in Australia, you can go one of two ways.
1. Buying A Whole Property.
Owning a whole holiday home comes with a high upfront cost. You need to pay for the entire cost of the property, including the down payment and mortgage payments if you choose to finance the purchase. This can be a significant financial commitment for many people, especially if you are already paying a mortgage on your primary residence.
On top of the upfront costs will be the ongoing expenses. You are responsible for all of the maintenance costs, property taxes, and other expenses associated with the home. These expenses can add up quickly and may be difficult to manage. To make this option more manageable you could consider one of the following options:
Renting Out The Property
If you’re not planning to use the holiday home year-round, consider renting it out to offset the costs. This can help cover the mortgage, property taxes, and maintenance costs. However, there is always the possibility of unreliable tenants, property damage, being held liable for accidents or injuries that occur with the tenants on the property, such as slip-and-fall accidents and limited control for you (the owner).
Budget For Ongoing Expenses
Owning a holiday home comes with ongoing expenses, such as property taxes, insurance, maintenance, and utilities. Make sure to budget for these expenses to avoid being caught off guard.
Budget For Time, Maintenance & Repairs
Owning a whole holiday home requires the owner to manage and maintain the property themselves, or through a property manager of their sourcing. This responsibility can be time-consuming and costly, especially if there are issues such as structural problems or damage from renters.
Overall, buying a whole holiday home can be a significant commitment that may not be feasible for many people. Fractional ownership, on the other hand, offers a more affordable and flexible option that allows you to enjoy the benefits of a holiday home without the responsibilities of full ownership.
2. Owning A Fraction Of A Holiday Home
If you don’t have a million dollars, or perhaps you have a million dollars but would prefer to spend some of it on something else, Kō offer a unique opportunity for individuals to own a share in a million-dollar holiday home without having to bear the full cost of ownership.
With Kō’s model, multiple individuals can own a fraction of the property.
You buy your ideal number of shares, which will determine the cost of your investment and Kō-own a luxurious holiday home with up to 8 co-owners. You will also be responsible for paying just your portion of the maintenance costs, property taxes, and other expenses associated with the property.
Once you have purchased your share, you will be able to use your luxury vacation home for a predetermined amount of time each year, using Kō’s seamlessly integrated booking engine (up to 42 days for a 1/8 share).
Then you can enjoy your holiday home for a fraction of the cost as well as a fraction of the responsibility and time.
From property management to administration & maintenance, Kō provides a hassle-free experience so you can make the most of your holiday.
Fractional ownership allows you to own a share of a vacation home at a much lower cost, which can be a more affordable option for many people.
You would only have to pay for your portion of the purchase price and the ongoing expenses, such as maintenance costs and property taxes, based on your ownership percentage.
Additionally, you would not have to worry about finding renters or maintaining the property during periods when you are not using it, which can be a significant advantage.
Any information or advice contained in this blog is general in nature and has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information or advice in this blog, you should consider the appropriateness of it (and any relevant product) having regard to your circumstances and, if a current offer document is available, read the offer document before acquiring products named on this website. You should also seek independent financial advice prior to acquiring a financial product.
All financial products involve risks. Past performance of any product described on this site is not a reliable indication of future performance.
Ko Homes Pty Ltd is the Investment Manager of the Ko Homes Trust. It holds a Corporate Authorised Representative authorisation CAR No.1298188 from Quay Wholesale Fund Services Pty Ltd (Quay) (AFSL No. 528 526). Ko Homes Pty Ltd also holds a Corporate Authorised Representative authorisation from Quay allowing it to provide General Product Advice.
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