Ohakune Bach.

[kiwijules]

Hi, I am thinking of buying a bach in Ohakune. I have 6 mths left on my mortgage and my house is valued at $230.000. I want to purchase a Bach valued at $160.000. I plan to stay at the bach for 4 weeks a year and rent it out for the remainder. I currently pay $175.00 per week on my mortgage and would like to continue paying this amount on my bach. I am self employed and earn aprx $55.000 a year. I am 37 and think this is a good retirement investment but I suspect property prices will continue to drop for another two years so I may just sit and watch the market. Does this sound like a good plan or am I making a mistake?

[Gatekeeper]

I wouldn't touch it with a barge pole. Friends and family have had so many hassles renting out in Ohakune over the past couple of decades, both as holiday accommodation and as a regular let. Around about 1990 there was no snow at all and it wiped out a few people and business's. Summer lets would be few and far between, and you need an excellent manager/cleaner (at a cost), to ensure the place is clean and in top order for every new guest.

I run a holiday let business in Wellington, so have a bit of knowledge in that area. Hope that helps. Cheers.

[Careynz]

Ohakune Bach

We have owned a house Ohakune since August 2007. We use Bachcare to manage to property and the renters and have been very surprised how well it has gone. Over the ski season we get 40+ days rental and can rent the place between $210 and $270 per night depending on whether it is a week night or weekend. We have had no problems other than a few minor ones with renters and Bachcare are brilliant at their job (they take around 20%).

During the summer it is mainly rented to friends at a much reduced rate as Ohakune seems to be a good spot for people to break journeys and even to have a summer holiday. We also loved skiing and snowboarding ourselves so save on family rental costs that we would otherwise incur. So in summer we get about $8,000 from skiers and around $1-2,000 from friends and friends of friends.

I have to say though its primary purpose is as a family holiday home that brings in a some money through the ski season rather than as a investment property. Hope this is helpful.