REAL ESTATE – INVESTMENT – MARBELLA WOHNEN – Is it advisable to invest in vacation homes?
Is it advisable to invest in vacation homes?
In Spain, the acquisition of tangible properties is above other more volatile investment options such as the stock market. The reason is quite simple: the real estate market is traditionally considered a refuge value and its chances of return are reasonably high in the medium and long term.
Having a vacation home in the mountains or on the beach can be an illusion that, if you know how to manage this property, can also bring you financial benefits.
However, before buying a vacation home it is important that you are clear about what its use will be. In this way you can assess to what extent it is a good investment.
What to be clear about before investing?
Our advice is that when considering an acquisition of these characteristics, be clear about:
- If you are going to make personal use of the property as a holiday home or second habitual residence.
- If you are going to use it for rent.
- If you are going to use a “mixed” formula, that is, occupy the house for part of the year and rent it out the rest as a vacation home.
On the other hand, if you are going to buy a vacation home, it is also essential that you choose the place to do it well. As you know, there are more tourist areas with a higher demand for accommodation, and that means that the properties there have a higher value both for rent and for sale. Our advice is that you opt for urban environments and close to services.
Why is it a good investment?
This type of rental has become popular among travelers; Let’s take into account that, as a result of the coronavirus, tourists prefer to reach more intimate and private places when they travel and precisely because of this trend, investing in a rental home is the most suitable accommodation to meet these needs.
Users prefer a more personal and private experience than a hotel; and today the same services of a hotel can be offered in a vacation rental.
Advantages of investing in holiday homes
- Many investors are looking at vacation rentals as a safe haven, potentially lucrative value for their money.
- Vacation rentals located in beautiful rural areas or near popular tourist destinations; they tend to offer high rental returns for a year. In high season, vacation rental owners can earn up to 30% more return on their investment.
- Long-term capital appreciation potential; if you are buying a blighted property to rehab and renovate or in an area that is becoming popular.
If you want to invest in a vacation home and need professional advice, do not hesitate to contact us. We are experts in real estate purchases and investments.
Marbella WOHNEN Immobilien
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