A while ago my colleague Thomas wanted to go halves with me on a vacation property in California, he had worked it all out found the right spot and believed that it could be a real money spinner. Despite my wife’s disagreement, I decided that this was a good opportunity and so I went ahead. For Thomas Leeper Myrtle Beach was somewhere that he loved to go on vacations and it was here that he had found the property, at a great price I must add. The rental went well and we have added 3 more in the years since. I can’t recommend this enough and if you invest in vacation home, here are the benefits you can count on.
If you are able to find a vacation rental in a popular area then you can make money each year by renting it out. There are so many ways in which you can find people to rent your property and the only cost to you, if you don’t live near the property, is to pay for someone to maintain and manage the rental. Within the first 3 years of buying that property Thomas and I almost had our money back as a result of vacation rental alone, and most years there would only be someone in the property for perhaps 9 months of the year.
Much like investing in any other type of property, when you buy a vacation rental it is important that you buy somewhere which has a potential for value appreciation. We managed to get a real bargain on our first place and within just 2 years it was in positive equity. Thomas and I have no intention to sell our vacation homes but we know that if we do we can turn a real profit on our investment.
One of the biggest benefits of having a vacation home is of course so that you can spend some time there. This has greatly reduced the cost of our vacations and even better is that when we go away, it is a real home from home. We know where all the amenities are, we know our neighbors in California and we aim to go there at least 3 times a year. Furthermore our families have also been able to enjoy the benefit of us having a place out in California and they love to head out there for a break.
A vacation home is also a great way for your to diversify your investments. This is something which is also encouraged by the experts and it makes for a great addition to your portfolio. Diversifying is all about lowering your risk and if you are able to add real estate to a portfolio which has stock and shares, you can help to spread out your investment and be more risk averse.
If you have been thinking about buying a rental, I can certainly recommend it.