At first glance, vacation properties might seem an unnecessary luxury ... but actually, buying or keeping a second home can be a good investment - if you're OK with renting it out in the short term.
Most people (with jobs) don't stop taking time off even in questionable economic times. They may, however, seek out cheaper vacation spots, often closer to home...
And that could be your lakeside cottage, cabin in the woods, or waterfront condo. Vacation property rental can be a great source of income if you can bear the thought of sharing it with others.
In fact, renting out your holiday spot could end up being a great financial boon; real estate journalist Broderick Perkins writes on Realty Times, "When your monthly mortgage payment is less than or equal to 1 peak week rental, 12 weeks of rental will cover your mortgage payments for the entire year."
Rental Choices for your Vacation Place
- Run a Bed and Breakfast - either managing operations yourself, or hiring someone to do so.
- Work with a vacation rental property management company to list/book your place for you.
- Rent the place yourself without a middle man. The proliferation of websites marketing vacation properties makes this easier now than ever.
- Make a charitable donation: rent your vacation property for use by a non-profit organization (church retreat, for example) and get a tax deduction.
Good Time to Buy that Second Home
You don't have to already own a vacation property to benefit from this stream of revenue generation. Now is a great time to buy a cottage or other type of second home - what with low interest rates and lower prices.
You could even consider buying a vacation property with another family; the same rules of caution apply as to any form of co-buying a home with someone who isn't your spouse/partner in life.
CENTURY 21 Local Experts can help you find the right vacation home. Give me a call or send me an email if you’re considering a vacation property this summer.