For many people, the idea of one day owning a holiday house is a distant dream. It’s something you might do once you pay off your home or you’ve put the kids through school. But for the Pritchard family, a holiday house came first.
Rebecca Pritchard says the aim was to, “Create a beautiful, practical, memory-filled holiday home on the shores of Lake Eildon — a place that could host family for generations.”
Eric and Rebecca Pritchard on their block of land. Picture: Supplied
They had family ties to Bonnie Doon, located on Victoria’s Lake Eildon. When a property they had frequently visited was sold, they asked themselves, “Do we really want to create something of our own?” The answer was yes.
Ms Pritchard, who is a senior financial planner at Rising Tide, and her husband, Eric, both aged 36, threw everything at the goal to make it a reality. They worked through their university years and didn’t travel, which enabled them to buy their first property aged 23.
The small lakeside town of Boonie Doon has a median house price of $850,000 according to PropTrack. Picture: realestate.com.au
As a financial planner, Ms Pritchard also understood the power of investing in shares rather than relying on property equity alone.
“Short term, cash is your best friend,” she told realestate.com.au, but said that as 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 land
In 2018, a rundown worker’s cottage, built circa 1910, became theirs after several months of negotiations.
Although the land had a home on it, it was too close to the water by today’s standards, meaning the house had to be relocated further up the block or demolished.
A sketch of the original cottage. Picture: Supplied
“We checked it for heritage and it didn’t come with any restrictions,” she said, explaining their decisions to build a new home.
But they kept the footprint of the original cottage and retained some features including the original front door, stoop, lock and key.
The original front door now sits on their new home. Picture: Supplied
The family had outgrown their principal place of residence in Melbourne, but instead of upsizing, they sold, rented elsewhere and put the equity into their holiday home fund too.
Pre-build costs stack up
By 2019, they were ready to plan their future property.
“We engaged a team to go through a multi-stage design and consultation process. This included architectural design and interior concepts,” Ms Pritchard said.
This is a budget consideration for anyone who wants to build a new home – architects and project managers (i.e. soft costs) aren’t always funded through a construction loan. Fortunately, the couple were prepared.
“We had a long-term strategy to invest through our 20s — even small amounts — knowing it would give us flexibility during lower-cashflow periods like parental leave,” she said.
The young family began investing in shares in their 20s with the goal of building up a nest egg. Picture: Supplied
Some of their shares were investment bonds, and because they were held for more than 10-years, the withdrawals were tax free.
Ms Pritchard said cashing out their bonds paid for much of the extensive consultation process. When they pulled the funds out, they had $200,000 to work with.
A build years in the making
In late 2019, the couple's first child was born, then the pandemic arrived, which disrupted timelines, but gave them more time to prepare for construction and complete a building tender process.
In early 2021, their second child came along, interest rates started to rise and borrowing capacity was reduced.
“We couldn’t apply for a construction loan until I returned to work from maternity leave,” she said.
The holiday home was completed seven years after they purchased the site. Picture: Supplied
It took until early 2023 to get a quote they were happy with. Next, they could apply for a construction loan.
“One of the key obstacles was getting a bank to fund in a regional area – specifically Bonnie Doon,” Ms Pritchard explained. This is “due to the small town location and lack of comparable sales."
In other words: the construction loan amount they were offered wouldn’t cover the cost of the build.
Lake Eildon is a popular tourist destination for Melburnians. Picture: realestate.com.au
At this juncture, they had to lean on their investments to cover gaps while also re-strategising and securing quotes that met their finance needs.
“Having three rods in the fire [shares, cash and equity] and using different resources at different points in time was a big part of how we brought this to life.”
Finally, in August 2024 the old timber dwelling was demolished. Construction of the new home began the following month and they were in their holiday home in May 2025 – seven years after they purchased the site.
Learnings and rewards
Excluding the bank loan, Rebecca and Eric needed $200,000 in shares, approximately $200,000 from the sale of their Melbourne home plus $120,000 in cash. Without a diversified stream of funds to pull from, it would have been difficult to get the outcome they sought.
“If you have a bucketload of equity in your existing dwelling you can probably rely on just that. But the flexibility of liquid assets (shares) was really handy,” she said.
The property taking shape. Picture: Supplied
Today, they manage their mortgage which includes the land and the build, and the cost of their rent in Melbourne. Their plan is to rent in Melbourne while their children are in school.
Ms Pritchard says they will always have a base in the city, with the Bonnie Doon residence being their hard-won family haven.
They are proud of their achievement, but she concludes, “It wasn’t always comfortable. It required discipline, stubbornness, patience, and a few brave leaps.”
But it’s worth it now that they spend sunny days on their patio with family and friends.
“We’ve accepted a simpler lifestyle for the next few years, in exchange for something deeply meaningful and enduring.”
English (US) · 