Why vacation homes make for a perfect investment?

Are you filled with nostalgia every time you browse through the pictures from your last vacation? Do you miss the serenity of the vacation home you had rented? DO you crave a place that can become your escape home? Well, now is just the right time to do so. While most people may still be skeptical about investing in a vacation home, here we shall share some factors which will surely help to gain clarity on this front.

 

Smart investors now plan ahead and look for options that offer great returns, and a vacation home is an ideal choice for such people. Not only does it give great returns in the form of rentals, but also enables the owners to have a ready space available to enjoy and take a break at their discretion.

Having a vacation home in a hill station like Lonavla, or by the beach in a place like Alibaug is a blessing for people on the go, as they can easily escape for a short weekend or relaxation away from the urban jungle of Mumbai. People also consider party destination Goa as an ideal option, as it attracts tourists both from the domestic front as well as the international front too.

Events like New Year are another time when you can conveniently host a party without having to shell out enormous amounts for a venue. The flexibility of owning a farmhouse, a bungalow, or even a large apartment is a draw that no one can resist. In fact, there are people who even plan a destination wedding with ease, as they no longer have to worry about accommodation.

Moreover, the vacation home can also bring in a steady flow of income, if it is listed in some of the popular homestay booking portals. This will ensure that the premise is put to use, and is functional at all times while generating revenue for the owners. Sounds interesting, doesn’t it?

 According to a report by the National Association for Realtors, most vacation home investors aim at gaining through a combination of short term and more extended rentals, to augment their income. But for those who are not too keen to have strangers living off their premises around the year, one can opt to rent it out for a month or so every year during the peak season, and use this revenue to pay for the wear and tear as well as maintenance of the premise.

Besides this, the appreciation in the real estate prices will also, help the owners to fetch good returns in the form of the long-term capital the gain in case they wish to sell the premises.

So what is it that deters most buyers from signing the dotted line? Well, there are a host of reasons! Some are intimidated by the colossal paperwork, while others are unsure of where to begin. The first step is to chalk out your needs, and then visit a good reliable realtor who will explain each and every aspect carefully. Some things that one needs to consider is the market timing, the underlying economics involved, and the actual utility. One also needs to decide whether the premise will be used solely for investment or as a combination of personal use and income generation. The layout of the premise, the amenities offered and accessibility to medical facilities and public transport are factors which need to be considered. Also, one needs to consider other aspects like availability of parking space, which in turn will increase the value of the property.

A good real estate agent explains each and every aspect carefully and will also ensure that the deal is closed with the least amount of hassle. SO if you are planning to invest in a vacation home, reach out to us at Urban Investment & Property Solution and kick start a steady income stream while having your own space in a delightful vacation destination.