For many people, it would not be summer without a few days spent lounging around in a house by the beach.

Property market commentators say homeowners with newfound equity in their properties are turning their attention to coastal areas, where many prices are still well below their previous peak.

Nick Goodall, senior research analyst at Corelogic, said his firm was starting to see more requests for valuations in areas such as Thames/Coromandel, Tauranga, Rotorua and Taupo.

But the rise of bach-booking websites and apps like Airbnb makes it easier than ever to secure a few nights in a holiday home just when you want them. So is it still worth splashing out on a holiday home?

How much will you pay?

The coastal property market in New Zealand is a mixed bag.

While some areas have been seriously in the doldrums for about eight years, others, especially those closest to Auckland, are reporting strong year-on-year price gains.

Onetangi, on Waiheke Island, saw prices rise 21.8 per cent year-on-year to a median $1.04 million this year, almost 40 per cent higher than their last peak.

Areas around Wellington also have not suffered as much in the coastal downturn. On the Kapiti coast, prices are still up on their peak – Waikanae's median $437,800 is almost 5 per cent up on the last high of $418,500. Nelson's Tahunanui is ahead of 2007 prices by more than 6 per cent.

But in other parts of the country, prices are still nowhere near the levels they reached in the 2007 property boom.

Information provided by Corelogic shows that of the areas surveyed, Paihia, in the Bay of Islands, has the furthest to recover. Its median price of $378,400 is almost 30 per cent lower than the $539,100 it commanded at the peak of the market.

But right throughout the far north prices are not what they once were.

Ahipara is 25 per cent off its peak, Coopers Beach is 28 per cent, Opua 24.3 per cent and Russell 20.5 per cent.

Other areas of the country are also affected: In Coromandel, Cooks Beach is more than 15 per cent lower than its peak price, Matarangi is 16.7 per cent off, Pauanui is 15.2 per cent and Tairua 11 per cent. Manawatu's Himatangi Beach is 22.7 per cent down from its $228,150 peak and Ohope is more than 16 per cent down, to $519,050.

Accessibility is a major factor in the price of a bach because it needs to be within an easy drive of the owner's home if they are to use it regularly.

The cheapest baches for sale at the moment are in Bluff and Buller. You could pick up a house on the waterfront at Marine Parade, Bluff for $90,000. A three-bedroom house on the sea at Buller is listed for $160,000.

Is it worth it?

Even if you are an avid beach-goer, a bach will probably not pay for itself on a per-night-stay basis.

Mortgage broker Bruce Patten has seen more clients buying holiday houses this year than last, which he said probably went hand in hand with more demand for properties in regions such as Whangarei, Taupo and Tauranga.

But he says for most it is a lifestyle decision, not a financial one.

If you borrow 100 per cent of Raglan's current median value $429,450 against your existing home, repayments will be $36,000 a year on a 20-year mortgage.

That is the equivalent of staying 144 nights at a rate of $250 a night, which booking sites say is about average over the summer months.

A house at Tahunanui where the current median is $339,900 would cost $29,220 a year, or 116 nights at $250. On top of that you will have to cover repairs and maintenance, rates and insurance.

Accountant Mark Withers said many holiday house owners were making up the difference by renting their houses out on a temporary basis.

Rental website Bachcare said areas of Coromandel such as Hahei, Taupo, Mt Maunganui, Queenstown and places within a short drive or ferry trip from Auckland were popular rental destinations.

Withers said he had three clients who were each earning more than $70,000 a year on their houses.

"You'd be surprised what you can achieve if you market it well and buy in the right location."

But Trade Me, which runs holidayhouses.co.nz, said most bach owners would make a gross rental before taxes, maintenance and improvements, of $12,000.

Capital gains

That means, unless you are willing to put some serious time and effort into marketing your bach for rent - and give up the most appealing nights of the year in it - you will probably have to rely on capital gains to make the investment stack up financially.

Goodall said it was reasonable to expect most areas could recover to their previous peak eventually.

That could indicate those that are lagging the furthest may have the biggest recovery ahead.

There are signs that the recovery has begun in some places. In the far north, Russell's median value is up 5.4 per cent year-on-year and Kerikeri is up 5 per cent year-on-year and now just under 8 per cent off its peak.

Cooks Beach has recovered 6.5 per cent over the past year. Raglan, though down 6.9 per cent on its highest prices, has had a year-on-year price increase of just under 6 per cent.

Kerikeri real estate agent Steve de Ruiter said it was as if someone had "flicked a switch" and sparked an influx of buyers into his area. "Seventy per cent of our clients are from Auckland, they are having a major impact."

Goodall said coastal areas within commuting distance of Auckland had experienced the biggest price gains so far and were more likely to have further increases.

Buyers could look a little further along the coast to see where the next popular areas might be.

"If you can go a half hour extra north and get a property for $100,000 less that might be quite appealing."Click to edit your new post...