Skip to content

5 reasons to build a holiday home

Building a holiday home anywhere can seem like a frivolous and luxurious endeavour. The reality of saying that you have a holiday home in Tekapo, or a bach by the beach can seem a distant possibility, and more like the sort of thing only the very wealthy actually do. After all, just because you fell in love with a place one summer doesn't mean you should actually buy a property there, does it?

For many people the jump from holidaying in a place to owning a property there is a pretty big leap. Financially it's a lot to commit to a place you may only get to enjoy a few times a year, if that. So why do so many people do it, and are there hidden benefits to doing so? In this article we'll explore 5 main reasons why people build a holiday home.

Long-term investment

The South Island of New Zealand is experiencing some very large increases in property value and this shows no indication of slowing any time soon. New Zealand, as a whole, is a very attractive destination for many people with several famous celebrities and wealthy businesspeople choosing to invest in properties here - some as an escape from a pending apocalypse!

Regardless of why, the trend for property prices in the South Island has been upwards for some time. As of May 2021 REINZ noted the following annual median prices changes:

  1. West Coast - $294,000 | 33.6% increase
  2. Marlborough - $650,000 | 32.7% increase
  3. Otago - $670,000 | 32.6% increase
  4. Canterbury - $582,000 | 26.5% increase
  5. Nelson - $700,750 | 20.8% increase
  6. Tasman - $850,000 | 21.2% increase
  7. Southland - $400,000 | 15.9% increase

This means that investing in property is seen as a relatively strong decision. Interest rates are low and mortgages are even being offered to first home builders on prefab houses which means buying one may be easier than ever. Why not make this investment in a region you already enjoy visiting? That way you can either rent it out or enjoy it yourself.

But what if you want to earn a passive income from renting out your second home and enjoy it during the holiday season? In that case we suggest reading on.

Passive income

With any second home there is a significant opportunity to not only increase your investment with equity gain but also from generating a rental income. This rental income can help pay the mortgage (meaning investment gain with little or no input from you), or provide a passive income to divert to other avenues.

But gaining a passive income while also enjoying the property can seem like having your cake and eating it too. Luckily several industry-changing trends from tech disruptors have made this very achievable if you know what you're doing.

Sites like Bookabach and Airbnb enable you to choose when the home is available to rent, easily allowing you to block off times when you intend to use the home yourself. You can even choose designs where a rental annex is always available, such as the Kingston house plan. The rental income from sites like Airbnb can sometimes be comparative to long-term rental to a steady occupant.

It is worth noting that some places across the globe have clamped down on Airbnb to protect the local hotel and motel industries but so far there has been no indication that New Zealand would follow. After all, the investments required to accommodate (literally) New Zealand's increasing popularity as a tourism destination would be huge. So why not tap into the existing infrastructure by enabling homeowners to also offer temporary and occasional accommodation to those happy to rent a house or room?


Aside from the financial benefits of a holiday home in the South Island, there are some intangible benefits as well. Friends and family can use it, cementing your relationships or you can offer it to colleagues and even your bosses to help smooth your professional relations too.

If you own a business then having a holiday home can help your employees experience additional benefits to working for you over the competition. Giving them the ability to book a few nights at your holiday home at no cost saves them hundreds if not thousands of dollars on what would otherwise be an expensive holiday and is seen as a perk of having you as a boss. It's always a good idea to limit the amount of nights that can be claimed in a year and to ensure the employee is present when the home is booked as they're likely to keep other guests under control for fear of the perk being withdrawn! Another strategy is to have this perk unlocked after a set service period so that employees are encouraged to be loyal and pay back any training you've invested in them.

It's not only employees that can see your relationship as exceptional due to exclusive access to your holiday home but also clients/customers.

Offering your holiday home for business uses may afford you tax breaks and financial benefits that your accountant will be able to explain in more detail.

Low-cost break

Once you add up the above financial savings and investment avenues then the passive income and increased value could mean your holiday costs are reduced. If your holiday home is located in an area you spent a lot of time then don't forget to add in the cost of accommodation that you were paying to the financial picture to see if you're better off buying a holiday home than continually renting one.

You may find there are further savings in renting ski equipment, for instance, when you can buy everything you need and store it in your South Island holiday home during the offseason. If you own your equipment already then consider how much nicer it would be to not pack it for each trip and have it waiting for you when you arrive (not to mention the extra space in your garage!).

Whereas there's no denying that buying a house is hardly the cheapest route to take to save money on your holidays it may provide several long-term benefits that take it from being simply a holiday home to a financial investment with the added benefit of being in an advantageous location for the occasional trip.

Local experts

The idea of building a new home in an area far from home can be daunting. Dealing with tradies you're unfamiliar with and the unexpected issues that invariably crop up can mean building a holiday home can quickly be discarded in the 'too hard' basket. But those same price increases that can make property investment attractive also mean that buying a property that's already complete can be the costlier option.

That's where partnering with a local expert can mean the difference between a hassle you need a holiday from to a project that's got peace of mind written all over it.

At Genius Homes we have helped hundreds of people build their dream holiday home, sometimes while they've been in another country! It's the local knowledge of resource consents and our trusted network of suppliers that enables us to build a home with the minimum of fuss.

And because it's built in our specialised factory you don't have to worry about unforeseen delays, like the South Island's famous '4 seasons in one day' unpredictability.

So why not discover our range of house designs to find your perfect holiday home. Not sure what you're after? Use our dream home finder!

Find your dream holiday home.


The latest Genius Homes

Download our latest catalogue