Are you considering buying a vacation investment property somewhere beautiful? Here are 7 reasons to take the plunge and buy the house of your dreams!
More and more people are staying in vacation rental homes instead of hotels. For instance, in 2010 only 1 in 10 U.S. travelers used private accommodations, compared with 1 in 3 in 2015. And then trend just continues to grow.
But if you’re considering investing in a vacation investment property for the first time, it can be a little intimidating. Don’t worry! We’re here to help.
If you’re on the fence about it, here are 3 key reasons you should buy a vacation rental.
Earn Rental Income
First and foremost, one key reason to invest in a vacation rental is the ability to earn extra income. Think of it this way.
How much would your mortgage payment be on your vacation rental? How much could you rent out your home for each night? And finally, how many nights a month would you need to break even and then make supplemental income?
By answering these questions, you can easily tell if you’ll be able to rake in extra cash each month by renting out your property.
Another reason to invest in a vacation property? The chance to build equity and wealth.
Here’s an example. Let’s say you buy a beachfront condo for $250,000, like these Villas in Menorca for sale. Let’s say you’re able to hold on to this property for 15 years. At that point when you want to sell it, it’s now worth 350,000 because property values have increased throughout the area.
What does this mean for you? You’ve earned $100,000 on your real estate investment. Talk about incredible passive income that could be used as savings, for large purchases, or for retirement.
A Great Place to Stay
Here’s a third reason to invest in a rental property: you’ll have an amazing place to vacation. Plus it will be very affordable since you won’t need to get a hotel.
Because of this, you’ll be more likely to take trips with loved ones, making amazing memories along the way.
Many people have fond memories of family vacations or reunions from their childhood. Maybe your family liked to all go to a cabin together. Or perhaps someone in your family owned a house near a national park.
Either way, it’s common for this home to become a wonderful gathering place for families. And how amazing would it be for you to be able to pass down your vacation rental to your children and grandchildren?
And if your rental is close to home, you could easily be to your destination in just a few hours any time you want.
Vacation Investment Property: What Are You Waiting For?
There you have it: 3 reasons you should consider buying a vacation investment property. And there’s no better time than the present to get started.
Think of all of the benefits of owning a vacation home could bring you. It’s
definitely worth it.
Want to learn more? Keep reading our blog.