Not very long ago, only a wealthy few found that they could afford to buy property strictly for the use of vacation purposes. As people all over the world have grown richer, however, those in North American especially have found that they are able to purchase homes strictly for vacation use. These homes are not purchased with an eye to making a profit; instead, they are intended only as recreational properties for the home owner and family to enjoy. Often these homes are located on or near places that are popular vacation spots, such as beach or ski resorts.
There are several reasons why owning a vacation home has become an option for more and more people in North America:
Wealth is not increasingly just in North America, but around the world as well. As people in other countries, especially old European countries such as Germany, have increased their fortunes, however, they have realized that property is rare in their own countries. This is also true in places such as Japan. Many people from these rich countries find that it is easier and less expensive to take a vacation overseas (and particularly North America) than it is in their own countries. We will see how this benefits the typical North American home owner a bit further on.
As wages and salaries have increased on the continent, so to has the amount of money people can count on as disposable income. More disposable income means more time for recreation, and many families are finding that having a second home to go to cuts down on a lot of the hassle of vacations such as finding a place to stay.
Owning a vacation home may actually cut down the costs of vacationing in the long run. Consider that a second home offers all the facilities of your own home, but in an area that is away from it all. Kitchens mean a lot of money saved, as you no longer have to eat out three meals a day!
Savvy investors are realizing that they can use their vacation homes as rental properties as well as for their own recreation, if they are willing to do the work involved.
Vacation Homes as Rental Properties
While some people may find that they want to make sure their vacation homes are available for their use with no notice all year long, more people are using their vacation homes to pay themselves off. This is achieved by treating the vacation home as a rental property.
In the traditional sense, a rental property would be used to rent to a tenant on a monthly basis throughout the year. With a vacation home, however, owners have the option of renting out their homes for blocks of time through the year which may be as little as a few nights or as long as a few months. This gives the owners an opportunity to let the house pay itself off.
Options for Renting out Vacation Homes
As mentioned above, wealth is increasing throughout the world. Wealthy people in countries such as Japan and Germany often find that it is easier to travel to North America than to vacation in their own country. People who own vacation homes in popular resort areas, including those next to major beaches, ski hills, and golf courses, will find that they are able to book their homes all season long to renters. If you are fortunate enough to have a vacation home in an area that is open all year long, then you have the potential to not just pay off the second home, but also to make a profit.
One of the keys to ensuring that you never pay the mortgage on your vacation home out of your own income is good advertising. Of course, the best advertising will be the spot itself. Don’t buy a cabin in the middle of the woods at a secluded lake and expect to be able to rent it out. While it may well be the most beautiful spot in the world, it will not be popular enough to ensure bookings. People who prefer seclusion for their vacation homes will probably find that the investment does not cost nearly as much as those in more popular areas.
Owners of vacation homes at popular areas can hope that their homes rent themselves out, or they can be active in making sure that people are aware of their property. Advertising can take up a lot of time, not to mention the cleaning, booking, and payment necessities that come with taking care of the business yourself. Many vacation home owners bypass these obstacles by using the services of a vacation home rental company. These companies are found in all popular resorts. They take care of the business aspects of renting out your vacation home. The catch of course is that there are fees charged, and you may also have to guarantee that your home will only be used by yourself a certain number of weeks each year.
As with any rental situation, vacation home owners will have to determine when they are going to take their vacations early if they are planning on renting their home out on a regular basis. There are still many vacation home owners who can afford to own their second home outright without worrying about renting it, and of course this means that there are no limitations placed on the time when you can enjoy your home away from home. People who are thinking about investing in property without covering the payments through rent should still consider issues such as security and upkeep while they are not enjoying the use of the vacation home, however. Neighbors can be useful when it comes to keeping an eye on your home, or you might consider using a security service as well as landscaping to keep the home is good condition during the times you are not using it.