How much do you spend on vacations? The answer is probably more than you would like. The average Disney trip for a family of four costs upwards of $5000 and it’s worth noting that this price increases every year. That’s a massive amount of money that you could be spending on other aspects of your life. Wouldn’t it be great if you could save money on your vacations and also earn money at the same time? Well, you can and the answer is all about investing in a vacation property. The right vacation property will mean that you can earn a massive amount of money back each year.
Don’t forget that now is also the perfect time to explore this opportunity. During the COVID-19 pandemic, people were stuck at home and unable to travel. It was a nightmare and now that restrictions are lifting people are keen to get back to their typical routines. This is great news for investors because the families on vacation also want something a little different. They want a private place to stay away from the hustle and bustle. Holiday home owners in the US are expected to earn triple their annual income this year as families rush to the beaches. There’s no reason to believe that this trend won’t continue for the next few years. So, a vacation property is likely the right choice, but how should you approach this investment?
Finding The Right Location
First, you need to make sure that you are choosing the ideal location for this investment. This needs to be somewhere that people will be keen to visit and that you want to return to yourself. This will be particularly vital if you are going to be hands on with managing your vacation home. There are lots of valid options worth exploring here. For instance, you could look at a place like Kissamee and buy into the gold mine of a home near Disney World resort.
Choosing The Ideal Property
Next, you need to make sure that you are choosing the right property. The best property is going to be attractive and appealing while matching your budget. However, do be aware that it can make sense to spend more here. Luxury homes could be the perfect option because you will be able to market them as much. This means that you will be able to charge families a fortune to stay there. So it doesn’t matter how much you’re paying because you’ll make your investment back over the next few years if the trends continue upwards.
Finding Your USP
Do be aware that people going on vacation are always going to have other choices when they are looking for places to stay. This means that you have to be smart and make sure that your property does stand out as much as possible. One of the ways that you can do this is by adding a USP such as an exciting exterior feature. You could add a hot tub and don’t forget you’re going to get benefits from this as well when you stay there.
Managing It The Right Way
You also need to make sure that you are managing the home the right way. If you don’t manage your property correctly, you’ll struggle to get the profits that you were hoping for. You can be as hands on as you like with this idea. However, it will often make more sense to instead think about using a property manager. You just need to make sure that a service like this is going to fit into your overall budget. The quality has to be there too because they’ll be the people engaging with those who come to stay at your property.
Preparing For Little Disasters
You can run into disasters with your holiday home. For instance, if you do decide to buy a home in Florida then you need to be prepared for the danger of storm damage. This won’t be as much of an issue if you do have the right insurance coverage in place. The best insurance option will mean that you can easily repair the home and ensure that it can be used throughout the year. It’s also worth having a little extra cushion of cash that you can fall back on if you don’t want to claim on your insurance as this will increase the premium.
Getting Those Great Reviews
Your vacation property is going to live or die based on the reviews that you receive. Poor reviews will mean that it’s always going to be difficult to gain the attention that you want from people who might be thinking about booking a stay. There are lots of reasons why you might get bad reviews such as issues with trust. When you market your home online, it’s important that you don’t talk it up too much. You need to be honest about the type of stay that a customer or client should expect.
Using It Yourself
Finally, you might want to think about using the home yourself. You can do this in a few different ways. You can stay there on holidays if it’s in a place that you love to visit and save some money on your own trips. Or, you can think about eventually selling the home for a profit. If you do this, you need to make sure that you are constantly making improvements to the home to increase the overall value. Alternatively, you could even treat this as a place that you will one day retire too. After all, who doesn’t want to retire with their own slice of paradise in a tropical location?
We hope this helps you understand some of the key steps that you should explore when investing in a holiday home. If you take the right steps here, then you will be able to make sure that you do see the huge profits that you have been hoping for. You just need to be cautious about the common issues that you can stumble into here and be smart with your decisions.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)