Watched Canadian real estate expert Scott McGillivray on Marilyn Denis last week, discussing how to make money off a vacation property. According to Scott, this type of purchase can be extremely lucrative, but he cautions before you take the plunge, that you should consider the following:
The first item is to research all four seasons before you buy. Scott recommends a buyer pay attention to something he calls "the shoulder seasons". These are the seasons that flank the main season- spring at the ski resort for the mountain biker exploring the trails, fall at the shore for the surfer seeking the warmth of the lake in mid-September, winter at the beach house for the avid ice fisherman. Although not as lucrative as a rental during peak season, these shoulder seasons can be very effective in increasing your income, and can only result in making the new owner profit that he would never realize if same property stood empty. Scott maintains management of a vacation property is relatively simple in this age of internet access. There are literally hundreds of websites devoted to marketing this type of rental, payment is always made in advance, and a cleaning service can be hired to ready a property if distance is a factor.
The second issue that a prospective buyer should consider is to know what you can afford. Perhaps this type of property becomes affordable by renting out half the time. Lately, I have run into a new "type" of client- the boomer couple looking to downsize and retire by utilizing equity in their family home. They may have a trailer in the summer months, and do not care to pay for a property that is sitting empty during the summer while they are already paying for their season at the trailer park. Why not consider a vacation property for this type of client? Retire to your winterized vacation property at the lake after your trailer closes at Thanksgiving, and in spring, when the park opens, rent your vacation property during peak season for peak profit. Making this property work to your advantage is the key, and can help you realize a world you never thought was within your grasp.
Currently, I have several vacation properties in my listing portfolio that could be key to realizing this kind of lifestyle. If this is something that may be of interest to you, please have a look at two of my listings, 46 Pitt Street and 29 Brock Street, both in the lovely village of Port Burwell. By careful planning, owning a vacation property can be closer than you think.