Browsing the internet at any given time, it’s easy to see lots of advice that there are plenty of reasons NOT to buy a property to use as a vacation rental home. But, buying in the right place, at the right time can be a very wise move indeed. Is it worth it? Let’s take a look at some of the arguments FOR buying a property for vacation rentals.
It’s an excellent introduction into the world of real estate for investment purposes. In an age of banking uncertainty, it’s certainly one of the safest places to stash away some money – as an inheritance for example. So, if you’re looking for a first real step into the world of property investment, then a vacation property rental is a logical move. Not only will you be keeping your money safe, but earning from that property at the same time, and you’ll still have the property to sell when the time is right – hopefully for a decent profit, all adding up to more than the paltry interest rates offered by the banks on savings.
A second income
That brings us to the subject of second income. Renting out your property, when done well, is an excellent source of second income, and all the empty weeks when you’re not on holiday can be formulated into quite a tidy nest egg, especially if you make effective use of special seasonal rates. Additionally, once your nearest and dearest find out you have purchased a place in the sun, they’ll all want to visit – which isn’t a bad thing! You could be charitable, but you might want to make some money from all these friends and relatives – setting special discounted mates rates of course!
Make it easy on yourself
No time to property manage? Think again. Use a simple property management system like Your.Rentals to ease the workload. Once your property is spot-on and ready to rent (and you have obtained your local licence number), then all that remains to do is to set your prices, decide where you wish to advertise, take some stunning photographs and we will take care of the rest – and all you have to do is sit back and relax! Allow Your.Rentals to handle the hassle, booking, requests and payouts, so you don’t have to.
Two (or three!) properties in one
When you purchase a property for vacation rentals, you’re effectively buying somewhere that has dual use. You will have somewhere to vacation yourself, saving on hotel bills and self catering apartments, in a place you love to visit. Secondly, others will have the enjoyment of using it, and paying you into the bargain. Think of your holiday rental property as a timeshare property too – you can use it when you want, or rent it out and go to different locations instead. Also, you can swap it for another property somewhere else as an alternative cost free way to travel and spend vacation time.
There may even be a third use too: many people dream of retiring to an idyllic location, away from the hustle and bustle of working life. When choosing your property, it might be worth keeping an eye out for local amenities that would make for a dream retirement spot – perhaps a golf course, quiet beach or a buzzing nightclub scene – whatever works for you!
Paying for itself
A property that’s a second home for vacation rentals often eventually pays for itself (if you manage it correctly). You can use the income generated by your place in the sun to pay the bills, and cover the cost of any maintenance required. Ideally of course, you’ll also earn much more than that, but it’s good to know that your investment is paying for itself, so to speak. Also, renting it out means it’s not sitting there empty, and regular guests mean that it’s kept warm, dry and aired during the weeks that you are not personally using it.
So, to summarise, when it comes to buying a property that is to be used for vacation rentals, there are arguably many more advantages than disadvantages. You will end up with a property that provides happy family holidays for yourself, a solid second income, a possible retirement home for the future, and your money will be soundly invested. Is it worth it? Yes, we think so.
Tell us what you think about the article?