Your guide to buying the perfect holiday home

There’s a timeless appeal to owning a holiday home – whether it comes with sun-kissed skin by the coast or a glass of red by the fire in the countryside. Beyond the lifestyle perks, properties in sought-after holiday home hotspots can also make a wise investment. Here, we explore the key benefits and considerations, alongside practical tips to help you balance strategy with emotion when finding the perfect holiday home.

There’s a timeless appeal to owning a holiday home – it’s a place to step away from our daily grind, recharge and soak up a slower pace with a side of salty breeze, rolling countryside or simplicity. And when you’re returning to a familiar spot year after year, settling into this slower rhythm becomes oh so easy – you’ll wonder how you survived without it. Holiday vibes aside, holiday homes offer more than just an escape from our modern lifestyle – they can create long-term value and provide a haven for retirement when the time comes, making the transition a stress-free moving experience rather than a daunting life change.

Here, we round up the key reasons to consider investing in a regional escape, how to decide if coast or country is right for you, and the main factors you should look out for when seeking out the perfect holiday home.

Why invest in a holiday home?

Whether it’s a space for you to retreat to, a hub for gathering friends and family, or a place you can let your creativity run wild, a holiday home can tick a lot of boxes for our emotional and physical health. They offer us:

• A ready-made escape

With all your home comforts on hand, you’ll slide into holiday mode the second you pull in to the driveway.

• A lifetime of memories

Whether it’s extra space for entertaining, a getaway where friends and family come together, or new traditions, holiday homes are often where enduring memories are made.

• Lifestyle factors you don’t have at home

From beach access to river-side living, hiking trails on your doorstep or snowy peaks, holiday homes often allow us to experience elements of nature or explore hobbies outside of our daily lives.

• Work/life balance

Sometimes, a change of scenery and an escape from the pressures of our regular home life is all we need to recharge our batteries. A holiday home is a great pull to get away more often.

Sold? The benefits don’t stop there, with domestic travel continuing to grow, especially short breaks (which make up the majority of local getaways), owning a holiday home isn’t just about lifestyle—it can also be a smart investment.

In popular tourist regions, short-stay rentals often earn significantly more per night than traditional long-term tenancies. While long-term rentals in New Zealand typically generate a gross yield of around 3–4%, short-stay or holiday rentals can push returns higher—sometimes into the 5–7% range, depending on location, occupancy rates, and effective property management.

The key factors?

• Location: Tourist hotspots like Queenstown, Rotorua, and coastal regions see strong demand.
• Seasonality: Summer and holiday periods can dramatically boost income.
• Management: A professional property manager ensures compliance, marketing, and guest experience—critical for maximising returns.

Coast or country. Which is right for you?

Love the sand between your toes and the salty wind in your hair as you take in the sunset, or is your idea of bliss sitting in a hot tub overlooking rolling countryside and drinking red wine by the fire? Whether you go for a coastal or country holiday home is largely a personal preference; however, you may be wise to add a side of financial insight to your decision-making. Stats NZ provide interactive tools that let you explore domestic tourism data. These tools allow you to, view regional travel statistics.

This is a valuable resource for understanding where Kiwis are travelling, how often, and what they’re spending—perfect for anyone considering a holiday rental investment or wanting to track tourism trends.

What to consider for your holiday home

From up-and-coming coastal holiday home hotspots to bustling seaside towns and country havens offering a retreat from busy city life, it’s important to be clear on your goals and your needs when searching for your dream holiday home destination. Here’s what you need to consider:

• Start with the bigger picture

It’s easy to get swept up in the romance of owning a holiday home, but it’s crucial to start with your bigger picture in mind. Are you buying a holiday home solely for personal enjoyment? Are you relying on short-term rental income from the property? Is it a long-term investment? Or are you planning to retire there?

• Coastal gems

Coastal hotspots like Mount Maunganui, Paihia, and the Coromandel in the North Island offer strong rental demand thanks to tourism and great amenities. In the South Island, destinations such as Kaikōura, Akaroa, and Nelson are attracting visitors for their natural beauty and relaxed lifestyle.

Don’t overlook emerging communities like Ōhope, Raglan, and Riverton, where your dollar can go further and long-term gains are possible. Keeping an eye on tourism trends can help you identify the next big opportunity.

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• Countryside havens

Easy access to major cities is key, as you don’t want to spend your whole long weekend or summer school holidays travelling (and neither do prospective holiday renters). And while serenity and a somewhat isolated feel may be part of the appeal, being close by to attractions or activities like wineries, national park hikes, farmers’ markets, or wedding venues boosts appeal.

• Assess the actual costs

While the purchase price of a holiday home versus the rate per night it commands in peak season may look good on paper, if you’re assessing a holiday home through a return on investment lens, make sure you’re taking into account all of the information. This includes ongoing maintenance, property management, insurance, cleaning services, local taxes, vacancy rates, advertising, and much more.

• Be aware of the risks

The value of holiday homes can be more volatile than primary residences, as they often slump in an economic downturn, as people tighten their belts (this affects your ability to rent it out, too). There are also different regulations to consider for short-term rentals, as well as climate risks such as flooding and slips, which may not be on your usual radar.

• Loss of lustre

That fizzing excitement you experience the first few times you arrive at YOUR holiday house isn’t guaranteed to last forever, and you might even end up feeling obliged to drag yourself there. Don’t fret, though – if the rental demand and returns are strong, renting your holiday home could fund your adventures elsewhere.

Lifestyle and investment – it is possible to have both?

Whether it’s the calm of the countryside or boho beachy vibes, ultimately, the right choice for you comes down to a well-researched decision that balances enjoyment with long-term value. Take in these tips to buy your first holiday home, and pair this with expert advice from the team at First National Real Estate. Our local experts will help you find a holiday home that becomes both a rewarding lifestyle escape and a sound investment. We’ll be there to help you every step of the way, too, from first setting foot in your dream holiday home, through to ongoing rental management.

Looking to explore the equity in your home? Get in contact with your local First National Real Estate team today for a free property appraisal or buyer consultation.

Disclaimer

The following advice is of a general nature only and intended as a broad guide. The advice should not be regarded as legal, financial, or real estate advice. You should make your own inquiries and obtain independent professional advice tailored to your specific circumstances before making any legal, financial, or real estate decisions. Click here for full Terms of Use.