The Eight Benefits of Buying a Vacation Property as a Real Estate Investment
Looking for the best way to earn passive income? How about real estate investing?
Becoming a real estate investor can be intimidating but buying a vacation property as an investment has been gaining a lot of popularity. We think it might just be the best way to enter the real estate business and become an investor.
There are many benefits to buying a vacation property and we have put together a list of the top reasons that we think you should consider this as your first real estate investment:
- OWN A DUAL-PURPOSE PROPERTY
You can use it as your second home and spend your own vacations there with your family, and then rent it out to guests the rest of the time.
- EARN PASSIVE RENTAL INCOME
Real Estate is a cornerstone to a balanced investment portfolio. Enjoy a second source of income to give the ability to enjoy that overdue vacation, buy that new car or pay off some lingering debt.
- BUILD VALUE THROUGH APPRECIATION
In addition to earning passive income in the short run, a vacation rental also makes money in the long run. Real estate generally appreciates over time. When you are ready to sell your vacation property, you can usually sell it for a higher price and cash in on the profits.
- PAY-DOWN YOUR MORTGAGE
Paying off your mortgage with other people’s money is a great way to build your wealth.
- CONTINUE TO ENJOY YOUR VACATION HOME WHENEVER YOU WANT
Renting out your home to guest’s is a great way to earn extra income but you still can use it when you want. Keep your house for family birthdays or special events simply by blocking off the dates.
- EARN TAX DEDUCTIONS
Similar to your primary residence or an investment property, a second home also provides tax deductions. These apply to mortgage payments, property tax, utilities, insurance, and other rental expenses. We suggest that you consult a tax accountant for advice.
- TAKE ON LESS RISK
Investing in vacation rentals exposes you to lower risk than other types of real estate investments. Vacation homes are in top tourist destinations, so you can attract lots of guests, reach high occupancy rates and charge a high nightly price. One way to reduce the risk is to choose a location and property that works as either a traditional-long term rental or as a vacation rental.
- THEY’RE EASY TO MANAGE
While some people take on vacation management as a full-time job, you don’t have to do this in order to start making money in real estate. Hiring a professional vacation property management company can help turn your investment to a completely hands-off passive income source.
Niagara Smart Stays is reinventing vacation rental management by offering homeowners better performance, lower fees and unrivaled flexibility. Our marketing and reservation systems allow us to leverage several hundred leading websites to outperform traditional property managers with a positive financial impact. Our network of on-the-ground partners are available to handle everything from housekeeping to maintenance. The real estate results are unprecedented and it exceeds the expectations of even the best performing portfolio.