OWN A DUAL-PURPOSE PROPERTY
If you’re a first-time real estate investor, you are probably considering all the options and thinking about what’s best for you.
Buying a holiday rental home has one clear advantage: It can serve dual purposes. You can use it as a second home and spend your own holidays there with your family, and then rent it out to guests the rest of the year.
GENERATE RENTAL INCOME ON A REGULAR BASIS
One of the major advantages of real estate investing in general, and investing in rental properties in particular, is the fact that you gain a source of steady income.
How? Through rental income.
The idea is that you will be renting out your second home to guests when you aren’t using it. You’ll be making money without having to necessarily buy an “investment” property. After all, your holiday home is your second home. It just happens to make money on the side.
When you buy a holiday home and use it as a short-term rental, the money you make from bookings actually helps you pay the bond and other expenses (property tax, insurance, maintenance, and repairs) for the place where you spend your holidays.
TAKE ON LESS RISK
Investing in holiday rental exposes you to lower risk than other types of real estate investment. First, holiday homes are in top tourist destinations, so you can attract lots of guests, reach high occupancy rates, and charge a high nightly rate.
The combined effect is high rental income. And rental income is how investors make money from their rental properties.
One way to reduce your risk even further is to choose a location and a property that works as either a traditional, long-term rental or as a short-term rental.
LEARN ABOUT REAL ESTATE THE EASY WAY
No matter how many real estate books you read or how many real estate classes you attend, you will not become an expert real estate investor until you actually buy an income property and start managing it.
Buying a holiday rental home provides you with an easy entry into the world of real estate investment because it’s often less stressful than other real estate investment strategies, such as becoming a full-time landlord, fix-and-flip, wholesaling, etc.
REAL ESTATE SIMPLE TO MANAGE
While some people take on holiday rental management as a full-time job, you don’t have to do this in order to start making money in real estate. It’s feasible to make owning a holiday rental a part-time job that doesn’t take up too much of your time, especially if you use a holiday rental management service such as Moi Travel.
Management is a major concern for inexperienced investors, and it can potentially turn into a real nightmare for first-time vacation rental owners. Imagine having to clean your property, change the sheets, wash the towels, and refill the toiletries between each guest – sometimes multiple times a week – all the while working your 9-to-5 job.
Most owners don’t have time for that. Instead of handling it themselves, they’re hiring property managers or holiday rental management services to take over those time-consuming duties. Moi Travel handles cleaning,maintenance and a regular rental income with networking to our vast pool of clients
YOU’RE INTERESTED – NOW WHAT?
Investing in a holiday rental home is an easy entry point to real estate investment that provides endless opportunities to learn and carries lower risk than other options. But if you are a beginner real estate investor, you might be wondering how to go about the whole process of buying a vacation home as an investment property. The majority of investors are syndicates and sole owners- depending on your personal interest in rental income.
By discussing your interest and expectations, Hanchen will be able to give sage advice- being a home owner herself, she has a realistic view and experience with a second real estate that serves as an additional income.