Should I Invest in Vacation Homes and Properties?

Anyone who watches the stock market knows that it’s wildly unpredictable. Fortunes are made every morning, only to be lost by the afternoon. That’s why savvy investors are looking for a safer, more stable place to put their money. 

One of the most exciting alternatives is investing in vacation homes and properties. But why makes these locations such a desirable investment? How do you put your money into them? And how can you maximize your potential returns? We’ll answer all of these questions, and more, in this post. 

Please note: this information is not intended to take the place of professional investment advice. Please consult with a qualified financial counselor before investing your funds in this or any other opportunity.

Why Are Vacation Homes and Properties Such a Great Investment?

Hotels have served as the primary form of lodging for vacationers and other travelers during most of the last 100 years. They continue to dot the local landscape in communities across the globe.

But, as anyone who has stayed in a hotel can tell you, the experience isn’t always pleasant. Rooms are often dirty, “neighbors” are sometimes sketchy, and the facilities in general may be run down, neglected, or located in dangerous parts of town. Often, this is just as true for upscale chains as it is for their budget-minded competitors.

Largely this is due to the nature of the hotel industry itself, which is dominated by a few major players. People sitting in a corporate boardroom may have little interest in maintaining individual locations. Even locally owned hotels can quickly become undesirable, with assaults, vehicle break-ins, and other forms of crime becoming more common every day.

The last thing travelers want is to live in fear during their trip. That’s why vacation homes and properties have become so popular in recent years. Here’s what makes them better than a traditional hotel:

• relaxing, welcoming atmosphere – – most of these properties are either individual houses or well-appointed private cabins. They’re furnished in such a way as to make guests feel literally “right at home.” 
• Better services/amenities – – the people who manage and service these properties are usually local residents. This means they have a long-term interest in keeping the properties safe, attractive, and desirable. Compare this to the typical corporate hotel manager, who can be transferred to a different location on a moment’s notice.
• Unique touches – – hotels are designed to be as bland and generic as possible. Vacation homes and properties, on the other hand, are decorated to reflect the charm and culture of the local community. No two are exactly alike, which is one reason why they’re so popular among travelers.

Put simply, individual vacation homes and properties offer a better value for travelers than the typical hotel. That’s why they’re an excellent choice for today’s real estate investors.

How Can I Invest in Vacation Homes and Properties?

In the past, investing your money in vacation properties meant scouring dozens or perhaps hundreds of potential locations, buying them outright, and tending to all of the repair and upkeep yourself. It’s no wonder that most investors shied away from this particular opportunity.

Luckily, all that has changed thanks to vacation investment property websites like here.co. Here are the advantages they offer:

• • Low financial threshold – – often it’s possible to start investing for as little as $100.
  • Fractional ownership – – each property is divided up into shares, which can be purchased for as little as $1.
  • Freedom from repair and upkeep worries – – the locations are managed and maintained by dedicated local people, not by the investors themselves.
  • Reliable income – – people will always travel for pleasure, no matter what the economy is doing at the time. For example, Americans took more than 300 million vacations during 2008, the year of the worst economic downturn since the 1930s.

• Fully insured – – each property is covered by insurance that shields investors from personal liability for accidents or other misfortunes.
• Potential for high yields – –  the investor benefits not only from rental income, but from appreciation and tax benefits as well.

How Do I Maximize My Returns and Minimize My Risks?

Here’s some tips for getting the most rewards from your vacation property investment:

• Diversify – – fractional ownership makes this easy, since each investor invests only as much as he or she is comfortable with.

• Always look down the road – – real estate is one of the best long-that’s professionally owned and managed term investment you can make, even after taking short-term market fluctuations into account. So always look down the road.
• Choose the right partners – – look for an investment firm that’s owned by seasoned real estate professionals and already has a successful track record.

Summing It All up

Investing in vacation homes and properties is a great opportunity for building real wealth. Consider adding this investment strategy to your personal portfolio. Chances are, you’ll look back on the decision as one of the best you’ve ever made.