Holiday Homes – Are They Really Worth It? - December Market Update 2025

Every December and January, something magical happens. People slip into holiday mode, the stress melts away, and suddenly every coastal town becomes the perfect place to buy a holiday home.

You know the moment: you’re strolling along the beach at sunset, gelato in hand, convinced the universe is whispering, “Mate… you should buy here.”

This is when otherwise rational adults ,doctors, lawyers, engineers, pilots and more, start scrolling realestate.com.au after two mojitos and decide they’ve “run the numbers.” Spoiler alert: they haven’t.

So let’s talk honestly about holiday homes. Are they worth it? Are they financially smart? Or do they turn into the property equivalent of a treadmill; exciting when you buy it, and a nuisance six months later?

The Holiday Haze: When Emotion Takes the Steering Wheel

Relaxation does funny things to the brain. People who agonise over a $4 coffee suddenly think nothing of dropping $1.5 million on a house with ocean views “because the kids love it here.”

Holiday homes often start as emotional buys, which is lovely for the soul but sometimes rough on the bank account. Before you get swept up in the coastal romance, it’s worth taking a sober look at the practicalities.

Vacancy: The Seasonal Rollercoaster

Holiday markets are like your favourite uncle: brilliant in December and January… suspiciously quiet the rest of the year.

• Peak season: you can’t get a booking unless you bribe a local.
• Shoulder season: a bit of action.
• Winter: tumbleweeds and empty key safes.

If you’re banking on year-round income, you may be disappointed, unless you’re in a truly high-demand destination.

Maintenance: The Not-So-Glamorous Fine Print

Owning a holiday home can feel like owning a small hotel… minus the concierge, minibar, and complimentary upgrades.

Think:

• Constant cleaning
• Linen that disappears faster than your patience
• Aircon breakdowns on a 38-degree day
• Pools that need attention
• Gardens that grow like they’re in a competition

Short-term rentals (STRs) are wonderful, but they’re intensive. This is why partnering with a professional manager like MadeComfy can turn a chaotic side hustle into a well-oiled operation. They specialise in maximising occupancy, optimising nightly rates, and keeping guests happy, so you don’t spend your life replacing broken wine glasses. I’ve recently converted one of my own investment properties from a long-term rental into a STR and used MadeComfy for this process and found it’s dramatically boosted my net yield.

High-Demand vs Low-Demand Areas

Just like restaurants, not all holiday destinations are created equal. Some have long waitlists; others have empty tables even on a Saturday night.

The Standouts Where Holiday Homes Actually Shine:

• Gold Coast, QLD – Tourism powerhouse. Beaches, nightlife, theme parks, and a constant stream of visitors.
• NSW Central Coast – Terrigal, Avoca, and Wamberal offer superb year-round demand from Sydney weekender traffic.
• Newcastle, Hunter Valley & Lake Macquarie – Underrated and growing. Great for families, sports events, and short hops from Sydney.
• Byron Bay, NSW – Still premium, still popular. Yes, council rules are tighter, but demand remains strong.
• Sunshine Coast, QLD – Noosa and Mooloolaba perform exceptionally across all seasons.
• Mornington Peninsula, VIC – Your Victorian winner. Sorrento, Rye, Blairgowrie and Portsea combine beautiful beaches, wineries and a loyal holiday market. Terrific STR potential when managed well.

If you buy in places like these, holiday homes can deliver strong returns and excellent capital growth.

Then there are the charming but isolated towns…

The ones where you think, “Not many people come here—that means opportunity!”

No, it usually means:

• No airports
• Few attractions
• Long off-seasons
• Limited growth drivers

Think places like Mallacoota, Manyana, Mission Beach, 1770, Strahan, Beachport or Bremer Bay. Properties in these locations can become expensive passion projects rather than high-performing investments.

Lifestyle vs Investment: Know Which Hat You’re Wearing

The biggest consumer trap is trying to split the difference: “It’s our family weekender… but it’s also an investment!”

In reality, it’s usually one or the other. If your goal is a lifestyle asset, wonderful, but please go in with eyes open. If your goal is return on investment, then think business-minded:

• Strong tourism demand
• Good accessibility
• Solid long-term growth
• Low supply, high desirability
• Professional STR management

Rich’s Bottom Line

Holiday homes can be fantastic, but only in the right locations and with the right strategy. But they’re not always the dreamy, carefree fantasy that summer holiday vibes make them out to be.

Before you dive in:

• Run the numbers.
• Assess the demand.
• Price the maintenance.
• Understand the regulations.
• And be brutally honest about how often you’ll really go there.

If you get the fundamentals right, a holiday home can become both a profitable investment and a place your family treasures. I personally don’t own a holiday home because I prefer to spread my wings and go to multiple holiday destinations. It’s far cheaper to rent a holiday house and then purchase investment property in other high growth locations.

If you want to explore whether a holiday home is genuinely right for you, or which areas will give you the best long-term bang for your buck, my team and I are here to guide you with clear, grounded advice… no mojito-fuelled decisions required.

Give us a call on 1300 655 615 to start a conversation about your next property purchase, or click here to send us your enquiry today.

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