Aussie Holiday Homes Top the List

A global study ranks Australia as one of the world’s top destinations for holiday home investors.

It was just pipped to the post by Cyprus, which took out top spot for holiday home ownership.

The study by Compare the Market analysed 50 global destinations based on factors such as affordability, climate, and lifestyle amenities.

It says Australia outranked other popular European hotspots, including Malta and Italy, driven in part by its enviable climate and lifestyle.

But Compare the Market’s Stephen Zeller warns would-be investors that buying a holiday home is about more than just finding a beautiful location – it’s about making a smart financial decision.

He says owners who don’t offer homes for holiday rental frequently could lose tax deductions under new ATO rules targeting properties not available during peak seasons.

From July 1, it may treat some holiday homes as leisure facilities, meaning owners cannot claim deductions, unless it is mainly rented out to generate income.

The ATO is using artificial intelligence to identify holiday homeowners incorrectly claiming tax deductions, with properties not genuinely rented during peak periods.