It used to be that when it came time to go on vacation a large amount of time would be spent planning where to go, when to go, and what to do. With today's rat race world, more and more people are looking at their vacation as more of a time to relax and are purposely avoiding destination vacations in favor of the increasingly popular "stay-cation". Usually located in an area such as by a beach, in the mountains or by a lake, vacation homes are a good place to have such a vacation.
Vacation properties can be good investments for a number of different reasons. Three of the most popular reasons are:
- Personal Use - While by usual standards stay-cations are spent relaxing at home, there is a trend toward buying a second home simply to be used for these vacations. By having a place to go anytime they want, owners are able to take more vacations as well as the freedom to make last minute plans. When compared to the cost of renting such a property on a nightly or weekly basis, the mortgage payment to own the property is frequently substantially less.
- Rental Property - Due to the location of the properties near vacation amenities, there is also a large demand for one-time use. This creates an opportunity for an investor willing to purchase the property to earn a significant return by renting the property on a short-term basis to many different visitors. At the same time, the owner has the freedom to use the property for personal use as well. Most property owners simply hire a property management company to take care of the home while they simply enjoy the benefits of ownership.
- Value Appreciation - If timed well, an investor can purchase a vacation property for a significant amount below its inherent value and hold until the market improves. For example, during the recent recession, vacation properties near the beaches along the Atlantic Coast could often be purchased for less than half of their prior values. For those investors with the capital and foresight to purchase during those times, the ensuing economic recovery has proven very profitable. And as an added benefit, these owners can use the properties for personal use and/or as rentals while they wait for the market to catch up.
Regardless of the reason a person looks at vacation homes for sale, at the center of it all is a place to relax, unwind and have a great vacation.