Owning a vacation property is a luxury that not all can afford. But for those who have the means, benefits abound.
Reasons to buy a vacation property
A place to call your own
Sneaking away for a long weekend to hit the beach or slopes is no longer a chore as headaches associated with vacationing are removed.
• Only light packing necessary for your vacation – Most owners leave what they need in their vacation property – skis, towels, innertubes, toothpaste, alcohol, etc.
• No ridiculous holiday surcharge pricing – When you want to go to the mountain is often when others want to go to the mountain. Avoid $1000/night hotel rooms over Presidents Day Weekend, 4th of July, Christmas, etc.
• Create your own paradise – Modify your vacation property however you want and go there whenever you want to.
• Status symbol – Owning a second home shows others that you have arrived.
Building equity
Even after the housing bubble crash, a home is still a great investment if you plan to keep your property for at least 5 years. Also, if you plan to use your second property as a retirement property, then buying a retirement property long before you retire might not only bring tremendous capital appreciation, but a place where you’ll have already paid down your mortgage.
Vacation rental income
With many tools available to a potential vacation rental host, hosting via Airbnb or VRBO is now easier and cheaper than ever before. Vacation rentals often produce 2-3x more in return compared with long-term rentals and still allow the owner to enjoy the property when they desire.
When purchasing a second home to be used as a vacation rental, it’s essential to understand your future property’s rentability. Things to consider when purchasing a vacation rental are the location and size of the rental property. Airdna has a great tool to help future buyers understand their potential return on investment in their desired area.
