10 Benefits of Owning a Vacation Home!
Have you ever dreamed of owning a vacation home? My wife and I always thought about owning a vacation home in Florida before we moved to the Sunshine State. We looked at properties in the 1990’s and were not sure exactly what we wanted, single family home, condo or a town-home. We even looked at timeshares and really tried to compare the benefits of what we wanted. We soon realized we wanted our own vacation home and something we could enjoy 365 days a year in our retirement. We wanted something we could go to as much as we wanted with no restrictions based on time of year or availability. We wanted our own place! Something we could use with the kids, friends or family. Something that could give us bragging rights.
As I travel the country working with people that want to become real estate investors, many express a desire to own a vacation home and Central Florida is definitely one of many popular places! Since many of these people have asked me what do I believe are some of the benefits of owning a vacation home, I put together this top 10 list:
An Education in Real Estate Investing 101
Many people I meet all over the country, have a desire to become a real estate investors. Vacations rentals can be an excellent way to get started and get your feet wet in real estate. It allows you to do all the things you would do for a real estate investment by working with realtors, selecting a location, dealing with contractors, setting up a team to assist you along the way, renting your unit, etc. The best part is you choose where you want to go and it is usually somewhere that you really like to vacation.
We made more money renting units as a Short-term rentals vs. a long-term rental.
Show me the money! We found that short term rentals can generate more money than regular rentals. When we first started, a 3 bedroom 2 bath condo was renting for around $700 per month and we realized that we could charge that or more for a week! It didn’t take us long to figure out that we only needed to rent the vacation unit a fraction of the time to cover our annual yearly expense for the unit.
Being part of a Growing Marketplace
The vacation rental market is a growing market where people want more choices when they travel. Having all the comforts of home can make a difference. When you travel with kids, it can make a difference to have a full kitchen, laundry and enough place for everyone in the family to fell conformable with their own privacy to relax.
You can use your vacation home whenever you choose with no restrictions on which days of the month or year. You can block the exact time out that you want. As many days or weeks you want or need for your family or friends. Then you can rent the home out as a vacation rental to guests. Can you image if the home would pay for itself over time. That is like getting a free vacation!
Second Source of Income – Rental Income
It sure would be nice to have some passive income. Your second home can produces rental income and pay your expenses such as mortgage, utilities, insurance, taxes, etc.
Real estate can appreciate in value and often the best investment people make during their life is in their primary residence. One of the best features of real estate is potential appreciation in value. Real estate is an asset and often is the best investment people make during their life time.
A second home can provide several tax deductions similar to your primary residence. It is best to consult a Certified Public Accountant or your tax preparer to assist you in taking advantage of any and all tax deductions you are entitled to as well as ensuring to conform with all tax laws. State laws may vary regarding what you might be able to deduct based on the number of days you use the property for personal use and the number of days you rent it out to guests as a vacation rental.
Having more Control over Risk
If you select a property in a top tourist destination you can control more of your risk with the attractiveness to rent your unit. If your rental unit is in a place where you can do either short term vacation rental or a regular standard yearly rental, it provides options to you in the future or when you decide to sell the unit.
Easy to Manage
A vacation rental can be managed by yourself or a property manager. Often property managers can assist you with as much or as little as you may need.
Prepare for Retirement
Many people often express to me a desire to start saving or planning for retirement. Often they want to pick a place where they can retire but also get a head start on the plan. Buying a second home in a place you believe you may want to retire can give you a jump on paying off your future retirement property. It can also provide you in establishing a footprint to start investing in a city where you may eventually want to relocate and earn passive income.
Final Thoughts – Conclusion
As a real estate investor that travels the country, I know many investors have a dream of owning a second home. I have helped real estate investors buy a vacation home in Florida and often they want to purchase more investment proprieties over time. Sometimes the most difficult deal is getting that first deal done and understanding how to continue to build a portfolio to profit in real estate. Real estate needs to be fun and profitable and that is way way you really can control your future in the new year and beyond. Believe and Achieve! – Joe Jurek
ABOUT THE AUTHOR:
Joe Jurek is a Real Estate Investor, Author, Public Speaker and Consultant. Joe has worked with hundreds of people throughout the country and provides consulting to new and experienced real estate investors alike.
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