For many people, the idea of one day owning a vacation home is a distant dream. It’s something you can do once you’ve paid off your house or sent the kids to school. But for the Pritchard family, a vacation home came first.
Rebecca Pritchard says the aim was to: “Create a beautiful, practical holiday home full of memories on the shores of Lake Eildon – a place where families can stay for generations.”
Eric and Rebecca Pritchard on their plot of land. Image: supplied
They had family ties to Bonnie Doon, located on Victoria’s Lake Eildon. When a property they frequently visited was sold, they asked themselves, “Do we really want to create something of our own?” The answer was yes.
Mrs. Pritchard, a senior financial planner at Rising Tide, and her husband, Eric, both 36 years old, have done everything they can to make it happen. They worked and didn’t travel during their college years, which allowed them to buy their first property at the age of 23.
The small lakeside town of Boonie Doon has a median home price of $850,000, according to PropTrack. Image: realestate.com.au
As a financial planner, Ms Pritchard also understood the power of investing in shares, rather than relying solely on real estate assets.
“In the short term, cash is your best friend,” she told realestate.com.au, but said because this was a long-term plan, shares gave the couple time to benefit from capital growth, which was more effective than putting money in an account.
Securing the country
In 2018, a dilapidated workers’ cottage, built around 1910, became their property after several months of negotiations.
Although there was a house on the land, it was too close to the water by today’s standards, meaning the house down the block had to be moved or demolished.
A sketch of the original house. Image: supplied
“We checked it for heritage and there were no restrictions on it,” she said, explaining their decision to build a new house.
But they kept the footprint of the original cottage and retained some features, including the original front door, porch, lock and key.
The original front door is now in their new home. Image: supplied
The family had outgrown their main residence in Melbourne, but instead of expanding they sold, rented elsewhere and also put the surplus value into their holiday home fund.
Pre-construction costs are piling up
In 2019, they were ready to plan their future ownership.
“We engaged a team to undertake a multi-stage design and consultation process. This included architectural design and interior concepts,” Ms Pritchard said.
This is a budget consideration for anyone looking to build a new home – architects and project managers (i.e. soft costs) are not always financed through a construction loan. Fortunately, the couple was prepared.
“We had a long-term strategy to invest – even small amounts – into our 20s, knowing this would give us flexibility during periods of lower cash flows, such as parental leave,” she said.
The young family started investing in shares when they were twenty with the aim of building up a savings pot. Image: supplied
Some of their stocks were investment bonds, and because they were held for more than ten years, the withdrawals were tax-free.
Ms Pritchard said paying out their bonds paid for a large part of the extensive consultation process. When they took the money out, they had $200,000 to work with.
A year of construction in the making
In late 2019, the couple’s first child was born, after which the pandemic broke out, disrupting timelines but giving them more time to prepare for construction and complete a building tender process.
Their second child arrived at the beginning of 2021, interest rates started to rise and borrowing capacity was reduced.
“We weren’t able to apply for a construction loan until I returned to work after my maternity leave,” she said.
The holiday home was completed seven years after the purchase of the site. Image: supplied
It took until early 2023 before they received a quote they were happy with. They could then apply for a construction loan.
“One of the main obstacles was obtaining financing from a bank in a regional area – specifically Bonnie Doon,” Ms Pritchard explains. This is “due to its small-town location and lack of comparable sales.”
In other words, the amount of construction loan they were offered would not cover the cost of construction.
Lake Eildon is a popular tourist destination for Melburnians. Image: realestate.com.au
At this point, they had to lean on their investments to close gaps, while also defining a new strategy and securing quotes that met their financing needs.
“Having three sticks in the fire [shares, cash and equity] and using different sources at different times was a big part of how we brought this to life.”
Ultimately, the old wooden house was demolished in August 2024. Construction of the new house started the following month and they were living in their holiday home by May 2025 – seven years after they bought the site.
Lessons and rewards
Excluding the bank loan, Rebecca and Eric needed $200,000 in shares, about $200,000 from the sale of their Melbourne home plus $120,000 in cash. Without a diversified cash flow to draw from, it would have been difficult to achieve the desired outcome.
“If you have a huge amount of equity in your existing home, you can probably rely on that. But the flexibility of liquid assets (equity) has been very useful,” she said.
The building is taking shape. Image: supplied
Today they manage their mortgage, including the land and building, and the cost of their rent in Melbourne. Their plan is to rent in Melbourne while their children go to school.
Ms Pritchard says they will always have a base in the city, with the Bonnie Doon residence being their hard-won family refuge.
They are proud of their achievement, but she concludes: “It wasn’t always comfortable. It required discipline, stubbornness, patience and a few courageous leaps.”
But it is worth it now that they spend sunny days on their terrace with family and friends.
“We have accepted a simpler lifestyle for years to come, in exchange for something deeply meaningful and sustainable.”
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