The NSW South Coast continues to attract buyers looking to combine lifestyle with long-term return. From Kiama to Ulladulla, more investors are exploring the benefits of owning a holiday home that doubles as an income-producing asset, and it’s not just about securing a beachside escape.
With the right strategy, it’s entirely possible to purchase a South Coast holiday home that not only covers its own costs, but also builds wealth over time.
WHY THE SOUTH COAST IS AN IDEAL LOCATION
The South Coast offers the best of both worlds: coastal charm with growing economic appeal. Its consistent popularity with holidaymakers, proximity to Sydney, and year-round tourism market make it an ideal location for Airbnb investment in NSW.
Popular towns like Gerringong, Mollymook, Jervis Bay, and Berry continue to see strong short-stay demand, while lesser-known areas such as Lake Tabourie and Manyana offer promising yields and value buys.
STRONG RENTAL YIELD THROUGH SHORT-STAY PLATFORMS
Well-located dual-purpose properties – those that can be used both as a personal getaway and short-term rental – are delivering excellent returns when managed correctly. Holiday homes with ocean views, easy access to the beach, or stylish renovations are especially in demand.
Many owners are achieving seasonal peak rates well above long-term rental equivalents. By carefully managing availability, owners can enjoy the home themselves during quieter periods while generating income during weekends, school holidays, and summer.
TAX BENEFITS FOR HOLIDAY HOME INVESTORS
There are also notable tax advantages available when your holiday property is genuinely available for rent. Eligible expenses – such as interest on loans, maintenance costs, insurance, depreciation, and even a portion of utilities – can be tax deductible, improving your net return.
It’s essential to get personalised advice from an accountant familiar with property investment structures to ensure you’re maximising deductions while remaining compliant with ATO guidelines.
LIFESTYLE PERKS WITH LONG-TERM GAIN
Unlike many traditional investment properties, a well-located holiday home offers more than just numbers on a spreadsheet. You’re building equity in a lifestyle asset you can actually enjoy.
From weekend getaways to family holidays and retirement planning, these homes offer a lifestyle benefit while serving as a smart financial move – especially if chosen in a growth corridor with strong resale demand.
WHAT TO LOOK FOR IN A DUAL-PURPOSE PROPERTY
Not all holiday homes make great investments. Look for:
- Walkability to the beach or town centre
- Strong year-round tourism appeal
- Low-maintenance features and modern finishes
- Flexibility of layout (e.g. separate studio or guest quarters)
- Local council regulations on short-term stays
Buying in the right location – and with the right setup – is key to ensuring your home pays for itself.
WANT TO SECURE A HOLIDAY HOME WITH REAL RETURN?
Whether you’re eyeing a weekend retreat or building your investment portfolio, our team can help you source the right South Coast holiday home – on or off market – that delivers both lifestyle and return.
Let’s chat.
Contact Katie Marsden at Earth Property Buyers Agents on +61 418 797 701 for a confidential conversation about how we can help you secure a holiday property that works for you.
