When you buy a vacation home, you’re making one of the few investments that offers both personal and financial rewards. And you don’t have to be a real estate tycoon to pull it off.
Buying a vacation home allows you to diversify your income, build wealth, plan for retirement, and, of course, take a vacation at no extra cost to you. Some investors weigh one benefit more heavily than the others, but once you’re clear on why you want to buy a vacation home, you can focus your search and match your investment with your priorities.
When you buy a vacation home and choose to rent it out, it’s possible to create a new, short-term rental revenue stream. This income could supplement your salary and any other interest-bearing income you earn.
While optimizing this income isn’t rocket science, it is vacation rental real estate science. You want to work with an agent who has the local expertise and vacation rental savvy to help you buy a vacation home with a good cap rate in a great market.
When you buy a vacation home, you join a community of savvy investors who understand the value of real estate holdings. Your property can be an investment or a legacy you leave for your family.
But, when you buy a vacation home, you don’t have to pay cash (or cash in your savings). Nearly 75% of people who buy a vacation home will invest through some form of financing.* Then, by hosting short-term rental guests, the mortgage, property taxes, HOA fees, and home maintenance costs are offset—all while you build wealth for today and tomorrow.
Retirement may be a few years (or decades) off, but buying a vacation home now opens up interesting options for you. Do you want to retire at the beach, by the lake, in the mountains, or even in your favorite urban oasis? Is it your dream to host your children and grandchildren in a vacation home for holidays and other special visits?
As you move closer to retirement, the amount you owe on your vacation home mortgage will be smaller, or it may be paid off completely. Meanwhile, with the right property management team looking after things, your home will be well taken care of until it’s time for you to retire there.
If you want to buy a vacation home to enjoy more downtime, join the bevy of buyers making a vacation rental investment within a two- to four-hour drive from their primary residence. If it’s a quick jaunt for you, and it’s easy to block out time to entertain or unwind, you may never want to vacation anywhere else again.
After all, if you want to go to your vacation home to relax, chances are paying guests will want to, too—especially if you buy a home that’s easy on the eyes and pet-friendly.
Vacasa offers property management and other real estate services directly through Vacasa LLC and through Vacasa LLC's licensed subsidiaries. Click here for more information about Vacasa's licensed real estate brokerage/property manager in your state. Vacasa’s licensed real estate brokerages/property managers include: Vacasa Alabama LLC; Vacasa Arizona LLC; Vacasa Florida LLC; Vacasa Louisiana L.L.C. (licensed in Louisiana); Vacasa Michigan LLC, 947-800-5979; Vacasa Nevada LLC; Vacasa New Hampshire LLC, P.O. Box 283, Conway NH 03818, Dave Grant, Broker of Record; Vacasa New Mexico LLC, 503-345-9399; Vacasa New York LLC, 888-433-0068; Vacasa North Carolina LLC; Vacasa Pennsylvania LLC; Vacasa Real Estate LLC (licensed in Idaho and Oregon); Vacasa Real Estate LLC (licensed in Colorado, 720-727-9358); Vacasa Real Estate LLC (licensed in Washington, Robert Brush, Designated Broker); Vacasa Resort Rentals of Hilton Head Island LLC; Vacasa South Carolina LLC; Vacasa Tennessee LLC; Vacasa Vacation Rentals of Hawaii LLC, 3350 Lower Honoapiilani Road, Suite 600, Lahaina, HI 96761; Vacasa Vacation Rentals of Montana LLC, Rickie Miller, Licensed Property Manager; Vacasa Virginia LLC; Vacasa Wisconsin LLC.
This document is for information and illustrative purposes only. It is not intended to provide “investment advice” or a “recommendation” regarding a course of action. The discussion is general in nature and has not taken into account your personal financial position or objectives. You should consult a licensed financial advisor or other professional to discuss your specific situation.