If you’ve built up some capital, and are looking for a smart way to invest it, consider the advantages of investing in a vacation rental. Whether it’s a beachfront condo or a cabin in the mountains it’s being predicted that over the next couple of years there’ll be a huge surge in demand for short-term rentals.
Let’s consider what this type of property can provide.
- Easy to market and manage
These days there are plenty of Airbnb-style platforms which make it easy for you to manage the rental remotely, selecting the available dates, choosing your booking criteria, and fixing prices to suit you. Local property management companies can deal with guest arrivals and departures, as well as cleaning and maintenance. So you can benefit from a significant income stream with minimal effort.
Some potential investors may be concerned that a property that is empty part of the time could be problematic –subject to break-ins or even squatters. Finding the right security system, which you can monitor from wherever you are, will help to put your mind at rest, as well as protecting your investment. Your management company can also carry out regular checks for you.
- A predictable income
Yes, you could invest your nest egg in the stock market – but that carries a high risk and, unless they really know what they’re doing, it’s not unusual for amateurs to lose everything. Even the most experienced investors are sometimes wrong-footed and have to sustain losses.
When you purchase a property, it’s a tangible asset. Although the market can and does fluctuate, over decades there has been a steady growth in property values. Choose a good quality property, in a desirable area for vacations, and in addition to the money you’ll earn from rental, your asset is almost certain to increase in value for years to come.
- Easy and cheap vacations
There’s more to life than money! But, we have to admit that it is important, so when you have the chance to combine business with pleasure – don’t miss out! Select a property in an area where you love to spend your vacations, and it can always be there for you when you want to take a break!
As well as calculating how much income your vacation rental can generate, think about how much you’ll save on your family’s holiday accommodation! For example, calculate how much it will cost you, over, say, ten years, if you take a two-week vacation per year! Instead, stay in your own property and enjoy spending that hard-earned cash on other things you’ll enjoy!
- A perfect retirement move
Planning ahead to your retirement is a smart move. So why not choose a vacation rental property in an area you’d like to retire to when the time comes. Finance your purchase by renting it out, so that when you retire you’ll hopefully have paid off any mortgages on it. Then, you’ll be in a strong position to sell your family home and release the capital tied up in it. You’ll already have a property you know and love as a base to enjoy your years of freedom!