We think the answer to this question is yes, but it’s worth diving a little deeper and understanding why this is. We’re going to use Florida as an example of the benefits of why you should invest in a holiday home. If you think about it, Florida is a prime choice. It’s popular with tourists, families and if you invest in a property here, you will likely see very few weeks through the year where it isn’t booked up. There isn’t really a down period in Florida and we’ll explain why this is later on.
How Much Will You Need?
This is definitely the best place to begin if you think about investing in a holiday home. How much is it going to cost you? If we’re thinking in terms of Florida, the answer will likely be somewhere between two hundred and three hundred thousand. That’s because the average cost of homes here is around 280K but you’ll probably want to aim for accommodation that is a little more luxurious. Do this and you will have a better chance of attracting more people interested in renting your property. You just have to make sure that you don’t outprice your target customer.
Do you need all the money saved to start this investment? It’s easier if you do but you can take out a loan. With a good credit rating and a solid line of previous investments or a stable income you could be approved for a loan like this within a few months. If you don’t have a good credit score, do make sure you clean it up before you move forward with this possibility.
What Are the Benefits?
If you choose the right place like Florida, one of the benefits is that you will see a constant stream of people wanting to let out your property. Why is this? Well, summer is always going to be popular with tourists taking their families on vacation while spring means spring vacation. Through February, March and other low months in the year, you can drop your rates and you will either break even or see a profit. Meanwhile, December is the busiest time of year for businesses like Disney World. As such, you’ll see a boom in demand around this time too. The trick is buying the right property. So, where should you invest?
Choosing the Right Location
You might think that once you have settled on a state or even a country, you have found the right place to invest. Not so fast, even within Florida some locations will be better than others. For instance, you could invest in the Village Florida residents love. You can learn more about this on the TalkofTheVillages. Here, you’ll find homes to buy and why this community is so popular with investors. But it’s just one possibility so make sure you look at the pros and cons of different areas before you buy.
How Much Will You Make
We’re still looking at Florida and the average rental rates are around $1500. You could see more if you select a different location or if you choose a luxury property. However, this level of payment is solid. Within a few years, you could fully pay off any investment you make. You just need to make sure you are ready for any maintenance or service costs. Florida in particular does bring the threat of damage from hurricanes.
We hope you see now why buying a holiday home could be the right choice for your bank balance.