Advantages of investing in vacation homes: A new investment opportunity

What are vacation homes?

First, we must define what a vacation home is. As its name suggests, it is designed to allow you to enjoy your own space while traveling.

DAY November 3, 2021
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Vacation homes provide you with all the comforts of home, plus the independence that hotels and other similar accommodations do not have, they are also an excellent option for you to rest in a more private environment and with greater freedom.

You can find vacation homes for rent in coastal areas near private beaches, and even in luxury apartments in the city center.

These types of properties have comfortable facilities such as swimming pools, balconies or terraces, gardens, parking lots, and even -if it is a luxury residence- services such as spa, massages, yoga, parks, etc.

The advantages of investing in vacation homes

Invest in real estate is one of the safest investments you can make, whether you plan to live in it or not, especially if the location you choose is in an area where capital gains are increasing.

The main advantages of invest in a vacation home include:

1. Double benefit: vacationing and producing an income

Buying this type of property will bring you great benefits, because you will have a house or apartment where you can spend a vacation with your family, partner or friends in your favorite place, and most importantly, you can spend a year renting it for the rest of the time, generating income.

What are the investments that generate the greatest capital gains? One advantage of buying real estate is that it is a tangible asset, so inflation does not affect it as much as currency.

Buying a property that will increase in value due to capital gains over the years is an excellent investment in itself, but it is better to rent the property when it is not in use for additional income and additional income. Use.

2. The demand for vacation homes is on the rise

According to data from Research and Markets, total investment in vacation rentals in 2019 is estimated at US$170 million. This is due to the fact that the types of accommodations provided by the vacation homes are different from hotels.

Its popularity has been increasing due to platforms such as Airbnb and Vrbo (which we will talk about later), so investment in real estate purchases for this purpose is increasing.

The opportunity to own a nursing home can also accelerate return on investment through vacation rentals, which is very attractive to investors looking for the best way to increase their income.

3. You can use platforms such as Airbnb or Vrbo.

Hotels have been able to maintain their visits, but -today- young people choose simpler options that give them more freedom and privacy.

Due to technological advances, the popularity of these applications is obvious, and because of the facilities in this medium, people are increasingly considering renting vacation homes on weekends or longer.

Whether you are traveling for leisure, work or business, these applications have successfully positioned themselves among the favorites for finding accommodations.

What is this all about?

Travelers see vacation rentals as an opportunity to make their stay more interesting and unique.

For example, during business trips, being able to stay in luxury apartments equipped with gyms, spas, swimming pools and other convenient facilities is more attractive than traditional hotel rooms.

4. Produces a consistent return on investment

Profitability can be defined as the return on investment. To do this, you must consider factors such as maintenance costs, as well as services and taxes.

Invest in real estate is secure because it can maintain or increase its value for many years depending on several factors, such as location, which has a direct impact on the equity of the property.

5. They can cover their own expenses

Although apartments or vacation homes near the beach or coastal areas require a great deal of maintenance, the costs can easily be supported by renting the properties during the time they are not in use.

Vacation home rentals in high tourism locations are on the rise and are usually rented on a daily or weekly basis, reaching a cost of $500 or more for as little as two days.

6. You don't need to spend to stay in vacation homes.

When you own a vacation homeYou will not need to spend money on hotel accommodations, you will have more comfort and you will not have to worry about booking your stay.

7. You can undertake real estate ventures in different tourist locations.

Among the greatest advantages of vacation homes is that you have the possibility of reselling them or acquiring financing with them and renting in another place of your liking.

You only need to make improvements to the property to increase its value and sell it after its value is revalued. With the profits you generate you will be able to invest in vacation properties.

How to invest in good vacation homes?

Buying a new home should not be complicated. The most important thing to know about investing in real estate is that it should be chosen carefully.

Here are a few tips to help you find the best way to find the right vacation home of their dreams.

Site and location

There is no doubt that the most important thing when buying a house is the location, even though the most important vacation homes If you are looking for a place near the beach are usually more expensive, you should always consider the following details.

First of all, the area must be quiet, have a pleasant climate, and have social and work activities. It is also important to find a region with high profit margins, high returns on capital and cheap maintenance services.

Real estate financing

If you decide to buy a vacation homeIf you have a property, but you don't have enough money to buy it, real estate financing may be your best option.

After reading this article, are you interested in buying a vacation rental home? At iBrokers we will be happy to help you find the ideal property.

If you don't have the time to take care of the needs of a house, don't worry, we can also help you with the property management.

Real estate investments