Why are Resort Homes a Smart Retirement
Investment?

Resort Homes a Smart Retirement Investment

India’s retirement planning has drastically overshadowed traditional investment strategies and savings plans. Resort home investment has emerged as one of the foremost lucrative options for securing one’s golden years. Owing to its dual benefits, future retirees can earn effortlessly with a steady passive income through property rentals and ensure a consistent monthly income. They can also have a luxurious lifestyle, which is a personal retreat for later years. This long-term strategic approach unlocks enhanced financial security and stability driven by life standards that promote holistic well-being, relaxation, and enjoyment in retirement life.

These prospects have transformed the retirement planning and second home industry into a matured stage and altered its entire business dynamics lately. More savvy investors are now increasingly nodding their heads in affirmation for investing in appealing real estate options like resort homes. As we dive deeper into the various aspects of resort homes, we can uncover how these leisure properties further redefine retirement strategies and prove more than a slice of paradise.

The evolution of holiday experiences with resort homes

The concept of leisure time as a holiday escape has undergone a major boost in the wake of Coronavirus. Multiple factors, including stressful work life, rising income levels, higher aspirations, desire for new experiences, and a heightened wellness focus, are compelling discerning travelers to consider their holidays more than a temporary escape. Consequently, they can experience a more personal space, authentic experiences, and a home-like environment even while away. These shifts in preferences have catalyzed the surging demand for owning resort homes, which were once considered trophy assets for Indians. While it used to be a concept limited to a handful of HNIs or NRIs, it has now caught the fancy of average Indians.

Studies suggest that the current second and holiday homes market is worth approximately $2.1 billion and growing by 23.6%. Another 2021 report stated that the country’s holiday home sector recorded an impressive jump from pre-pandemic times in 2019 to 88.63%, totalling US$1.394. India’s younger generations contribute more to the sector’s surging growth by considering purchasing resort homes in their preferred holiday destinations rather than staying in expensive hotels.

This demand can be attributed to resort homes’ luxurious offerings of premium-quality amenities and services, along with the assurance of a comfortable, homely environment. A 2022 report stated that within five years, the Indian retirement and second home market would grow at a compound annual growth rate (CAGR) of 23.63%. Having said this, here are further details on how individuals can diversify their retirement portfolios with this attractive option.

Exploring the reasons why resort homes are profitable investments for retirement

The value of resort homes is set to rise continually in 2024. Thanks to their highly rewarding returns ranging from 8% to 9% and up to an annual 9%. Please note that these returns highly rely on multiple factors (like property location & management, target audience, and branding, among others), and only the most appropriate combination can ensure consistent and robust returns.

Resort Homes a Smart Retirement Investment- inner

Financial advantages

Resort homes present a unique opportunity for retirees to generate passive income, significantly bolstering their retirement funds. Property owners can rent out their resort homes during periods of non-use, creating a steady stream of revenue without active involvement. This passive income can supplement pension plans, social security benefits, or other retirement savings, providing a financial cushion and increased flexibility in retirement spending.

Notably, we also get a hedge against rising inflation as a property’s value continues to increase in prime locations like Karjat, Alibaug, Dapoli,Goa, etc.

Lifestyle enhancement

One of the most attractive aspects of investing in a resort home is the instant upgrade of lifestyle. Access to luxury amenities, wellness facilities, and natural greeneries, which were once confined to high-end hotels, helps promote healthy living standards. Retirees can also experience organic living and foster meaningful social connections within a community of like-minded people.

Global vacation opportunities

Several resort homes offer the privilege of membership in a worldwide resort network. This facility allows owners to swap their time for stays at other luxury hotels globally. Hence, retirees with a penchant for travel can ensure heightened flexibility in vacation planning and possible cost savings on future vacations.

Hassle-free ownership

Retirees can opt for professional management services that accompany resort home ownership. From maintenance and rental management to property-related concerns, this hands-off approach completely transforms how they enjoy property ownership without taking day-to-day responsibilities.

Legacy planning

Owning a resort house is the biggest blessing because this valuable legacy asset can be passed down to future generations. Families can cherish the experiences and memories shared across generations and ensure a secure roof under their heads.

Balancing present enjoyment and future security

Distinct from traditional retirement investments, which typically don’t offer benefits until a certain age of retirement, resort homes embrace the advantages of immediate use, current enjoyment, and future security. As needs change over time, owners can flexibly adjust their usage and potentially increase their rental income stream as they age to meet the constantly changing financial needs.

Conclusion

Looking ahead, the industry will likely undergo a monumental shift with the entry of even more big players. Besides, the supply lines of second homes will continue to emerge more dynamic. Also, the introduction of top-tier facilities in resort homes, including valet parking, remote property access, wellness spa, 24-hour cafes, and concierge, among others, shall add unique value propositions for forward-thinking retirees. These advancements will likely welcome more NRIs, tech entrepreneurs, leading corporates, and art wizards to the sector.