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The Honest Truth About Buying a Holiday Home in Australia

October 16, 2025

Buying a holiday home is a dream for many Australians; we’re spoiled for choice when it comes to both coastal and country locations to strive for. A place to escape, a place to create memories, and if you play your cards right – make some extra income on the side. But here’s the thing, in today’s holiday home market it’s not all glossy Instagram reels and immediate big returns. The costs are real, the risks are real, and the people who make it work are the ones who go in with clear eyes and smart priorities – with style, strategy and purpose. 

The Market Right Now

Right now holiday homes are really having their moment. Domestic travel is booming across Australia and more people are booking holiday home rentals and Airbnbs than ever. Findings from the recent booking.com Holiday Home Outlook Report: Design Edition have shown that Australians aren’t just looking for a place to stay; they are choosing holiday homes because they want comfort, character, and interiors that actually feel inviting. And this isn’t me making this up, ya’ll – 85% of Aussies say the design of a place is the deciding factor in whether they end up booking a holiday home. 

On the flip side, interest rates remain higher, regulations are tightening for short-term rentals in many councils, and running a holiday home IS work. It’s seasonal, it’s management-heavy, and it can become a money pit if you underestimate costs like furnishing, cleaning, maintenance, and hopefully many guest turnovers. 

Pros & Cons

There’s no denying the upsides to owning a holiday home. It gives you lifestyle value you just can’t put on a spreadsheet. It can give you that place to escape, to reconnect, to truly enjoy yourself. And when you implement the right style, strategy and purpose from the outset – this can put a serious dent in the mortgage or better yet, pay for itself through the bookings. In the long run, you’ve bought well and you have a capital growth asset in a location desirable to you and your values. 

When it comes to downsides, cash outflow doesn’t just stop after settlement of your purchase. There will be the furnishing, the rates, the insurance, ongoing management – and you may feel an initial “oh sh*t what I have I done!” Which leads to my next point…

Why Interiors Matter Now More Than Ever  

Okay, here’s where I stop talking like a finance reporter and start talking like me… 

Dude, I genuinely don’t believe a holiday home succeeds without good interiors. Full stop. 

I’ve seen too many “investment properties” that are furnished with leftover couches, confusing artwork and decor, sad bedding, and zero thought for how a guest actually feels in the space. 

But trust me people, travellers notice everything. When you’re paying for a space – not a hotel, a home that is the ultimate backdrop, and therefore the make-or-break of a well-enjoyed holiday, you are paying attention to the details. Travellers don’t just want a place near the beach anymore, they want to walk into their chosen holiday home and actually feel at home. The booking.com Holiday Home Outlook Report latest findings shows that:

“cosy and inviting” is the number one design quality that makes a holiday home appealing to a potential paying guest. 

That is huge. Guests want to sink into a well-chosen comfortable sofa with a well-chosen blanket, they want to feel good about cooking in the kitchen, they want the kind of decor around them that celebrates the home and surrounding area  – like the perfect table and chair placed just where the most beautiful morning light comes in. These days, these are what drives bookings, reviews, repeat stays – and for you, revenue. 

So let me be clear here – styling is not just decoration, it is your strategy. If you invest in a cohesive, cosy, inviting interior from the start (within your well-prepared budget, of course), you are going to set yourself, your chosen lifestyle, and your business up for success. Your holiday home will photograph so much better, you’ll stand out in a crowded market, you’ll attract the guests you want to attract – those who care, those who respect your home, and those who are happy to pay a higher premium for comfort and an overall genuinely cosy experience. 

My Honest Take

So… should you buy a holiday home right now? Maybe. It depends on if you’re honest with yourself. Be honest about the costs. Be honest about that initial workload. Be honest about the furnishings. And most of all, be honest about getting the help you need to set the right standard from day one. 

Please, whatever you do, just don’t make a purchase thinking that location is enough. Australia’s tourist and most beautiful locations are far too saturated with holiday homes these days to rely solely on the location as your strategy to success. Yes it matters, but if you are only thinking about this one aspect – then you’ll join thousands of average-looking listings already fighting for scraps. If you are buying with the intention to create a smart, stylish home – a real home with warmth and comfort woven into every corner – you will be doing yourself a huge favour. You’ll have a place that works both as a lifestyle choice and as a profitable business for years to come. 

If you’re thinking about buying a holiday home, or you’ve just taken the leap, don’t leave the interiors and marketing as an afterthought. This is where I come in. I help holiday home owners transform their properties into inviting, profitable homes that stand out for all the right reasons in today’s crowded holiday home market. If you’d like to talk through your ideas, your challenges, or just where to even start, reach out to me today – I’d love to help you turn your holiday property into a seamless and beautiful holiday home experience.