The cost of buying a holiday homes holiday home in Melbourne can reach $1 million, according to a new report from RealtyTrac.
The property research company’s survey of over 800 holiday homes found that the average cost of a holiday house is $1.7 million.
The survey also found that an average of $4,500 is required to purchase a holiday property, which means the average household is spending over $1,300 a year on holiday homes.
The average annual income for a holiday homeowner is $66,904.
The report also found a lot of homes were bought at inflated prices, with a median price of $2.6 million, and a median rent of $3,500.
The research firm said there was a lot to like about holiday homes in Melbourne, but they were more expensive than some other parts of the country.
It found that Melbourne was one of the best places to buy holiday homes and had the highest median household income at $66.4 million.
It said the average annual cost of the average holiday home was $1m.
“The average annual expenditure is $2,903 per household in Melbourne,” Realtytrac said in its report.
“While the average expenditure is not too far from that of the national average, the average house price is still $1million, and there is a large gap between the cost of home ownership and the average income of households.”
It also found many of the houses in Melbourne were bought with “cheap” loans.
“We found that of 6,853 homes, 7,569 were bought on a mortgage with a variable rate of interest of 0.1 per cent, or 0.2 per cent per annum,” Realitytrac’s data said.
“This makes it the second-most expensive rental market in the nation, after Sydney.”
Realty Trac also said the Sydney suburb of Burwood was a good place to buy homes, with median house prices of $1 per square metre.
“Although this price is higher than the average of the rest of Australia, it is still below the national median,” the report said.
The data found many holiday homes were built on land that was unsuitable for human habitation, such as in flood plains or under water.
In some cases, holiday homes that were constructed on unsuitable land were not suitable for human use, such the Holmby Hills home on the north of Melbourne.
It also said that the median home price in the Greater Melbourne area was $7.8 million.
“However, the median house price in Greater Melbourne is lower than the national rate of $8.1 million,” Realtrac’s report said, pointing to the region as a prime location for holiday homes to be built.
“These findings show that while many of Melbourne’s holiday homes are affordable to buy, there are some areas in the city that are not suitable to do so,” Reallac said.
It noted that in the past year, the number of holiday homes built in the Melbourne region increased by over 2,000, and that “the trend is accelerating”.
“In 2019, Melbourne recorded the highest number of vacation homes built by a single developer, with 5,926 new holiday homes registered,” Realtrac chief executive Andrew Fenton said.
Mr Fenton also said there were “significant areas of the city” that were not suited for holiday home construction.
“In 2018, we had over 1,000 holiday homes listed on the Domain, and over 2.5 million properties were registered in Greater Victoria in 2019,” he said.
In 2016, there were about 5,000 holidays homes in the Victorian capital city.
“For the next 12 months, there will be over 6,500 holiday homes under construction in the CBD and around 500 properties are currently under construction,” Mr Feston said.
A spokesperson for Realty trac said it was not able to comment on the survey.
The company said it would work with local councils and developers to help them “build the best holiday homes possible for families and people living in Melbourne”.
“The survey also indicates that the current demand for holiday accommodation is driven by the housing boom and the recent rise in rental yields,” the spokesperson said.