Second Home Investment: Top Reasons to
Buy a Resort Property
Purchasing a resort property can be great for you to enjoy vacations and make some extra money. These homes are, most of the time, in beautiful places like beaches or mountains, making them perfect for relaxing as well as rental income.
As per a Statista study, India’s vacation rental market is expected to make about $2.12 billion by the end of 2024. This market will grow by 8.72% each year, reaching $3.22 billion by 2029. With vacation rentals getting more popular, owning a resort property can be a smart choice.
In this blog, we’ll look at the main reasons to buy a resort property and what to consider before investing.
Growing Demand for Vacation Homes
The need for vacation homes, especially resort properties, has increased a lot lately. A report shows that the vacation rental market was worth $99.6 billion in 2023 and will grow by over 3% each year until 2032. This shows that people want second homes in nice areas.
Top Reasons to Buy a Resort Property
Here are some reasons to invest in a resort property:
1. Good Return on Investment (ROI)
One big reason to buy a resort home is the chance for high returns. These properties are in popular tourist spots, so they can rent for good prices. As per Financial Express, investors can expect yearly returns between 8% and 20%, depending on the location and season. Resort properties also usually increase in value over time, giving you rental income and long-term gains. This means you can earn money while enjoying your home.
2. Spread Your Risk
You distribute risks through the help of resort property investments. Whenever you introduce real estate to your investment mix, you balance out your portfolio. Real estate, especially in resort areas, doesn’t always follow the same trends as stocks and bonds. What this means is your money is safer during the tough times – if the stock market goes down, your returns from your resort property may still do well. This helps protect your overall investments.
3. Stable Source of Income
Real estate gives steady income. Stocks do not. Resort properties are very safe long-term investments; the value of most resort properties tends to remain or appreciate. If you want stability in your finances, then this is a good choice, for you can rely on its ability to produce income year in and year out.
4. Personal Use
If you have a resort property, you are your vacation homeowner. No more stress about finding where to stay during the busy holiday seasons. You can now enjoy that quick trip with friends and family, making the most of the memories, knowing you won't be worrying about hotel bookings. Relax in a familiar space anytime.
5. Resort Lifestyle
Resort properties usually have fun features, like pools and private beaches. These can help you earn more from rentals and improve your lifestyle. You can host special events or enjoy nice amenities. Whether it’s a pool party or a family gathering, your resort home can be the perfect spot. The luxury of living a resort lifestyle even makes you happy.
6. Property Management Support
There is a lot of work that goes into running a rental property, but most resorts have management services that can help take care of everything from bookings to maintenance. You will enjoy rental income without hassle. This is great for investors who want to relax. You will not worry about finding tenants or fixing issues.
7. Easy to Access
Many resort properties are in places that are easily accessible via good transport facilities. It will help you and your renters with easy access; hence, making it very attractive to the location. Good transport links help make your resort property quite popular among the travellers.
8. Tax Benefits
Owning a resort property can offer tax benefits. Depending on your area, you may be able to deduct some costs related to your property. These can include mortgage interest and maintenance costs. It’s important to talk to a tax expert to understand how these benefits apply to you. These savings can make owning a resort property even better.
9. Build Equity
With each pay-off on your mortgage at your resort property, you are creating equity. Equity is that portion of the property that you fully own. This can be a very good asset. When you eventually decide to sell the property, you will enjoy added value from it. This also provides you with increased financial flexibility later on.
10. Community and Friends
Many resorts are a community. In most resorts, there is usually a club or activities to join. This is helpful for you to befriend people and make new friends. Being part of a community can make your vacation even better.
Final Takeaway
Buying a resort property as a second home can bring many benefits, like good returns and personal enjoyment. As the vacation rental market grows, investing in a resort home is a great way to mix fun with financial gain.
However, it’s important to do your research and think about your finances and investment goals before deciding. Consider what type of property fits your needs and how often you plan to use it.
With the right plan, a resort home can be a valuable asset in your investment portfolio and a cherished vacation spot. It’s a decision that can bring joy to your family and financial benefits for years to come.
