Katie Holmes has reportedly splashed out $500,000 on a holiday home.

The 34-year-old actress has bought a lakeside retreat in Michigan for herself and daughter Suri, seven, so that the youngster can grow up outside of the Hollywood bubble.

A source told the National Enquirer magazine: ''Katie wants Suri to discover what life in the Midwest is like and to get a taste of traditional American values. She hopes to take Suri there every summer.

''Katie's family wants Suri to be around her cousins and aunts and uncles. They are determined she won't grow up a spoiled brat.''

Suri is no stranger to holiday homes, as her father, Tom Cruise, recently took her on his private plane to his own luxurious private resort, The Greenbrier in Greenbrier County, West Virginia.

Since the 'Oblivion' star split from Katie last June, after six years of marriage, Suri has lived with her mother in New York with Tom having regular visits.

The Hollywood superstar - who also raises 20-year-old daughter Isabella and 18-year-old son Connor with his ex-wife Nicole Kidman - regularly uses his private plane to see Suri or to pick her up and the tot has access to the jet, which is based at a Manhattan heliport, whenever she wants.