You’re looking for a new investment. You want something that you can control, and you aren’t worried about instant gratification. You’re looking to diversify your assets, and gain some leverage.
If this is you, there is no investment option that fits the bill more than real estate. Yes, real estate is a popular choice for a long-term, serious investor, or somebody looking to become one. But, what many people do not realize, is that real estate is a broad spectrum, and one avenue that is not explored as much as we think that it should be is vacation rental properties.
Vacation rental property investments can bring you a lot of value for your dollar, and come with a specific set of positive aspects that other investments simply cannot provide.
If you have financial stability, and are looking to invest, there are very few reasons not to be considering real estate. If you are considering investing in a rental property, we think that there is a great argument to be made for putting your efforts toward making the decision of managing a vacation rental.
If the realities and maintenance of one property (the one you live in, presumably) is too much for you to handle, then a second property, in general, might not be for you. A second property comes equipped with the same responsibilities as the first, and the process of purchasing and maintaining one does not promise to come without a few bumps in the road. Still, we believe that the list of props is significantly longer than that of the cons.
If you’ve taken a look at your taxes and financial situation, crunched the numbers, and decided that a second property in the direction you’d like to move, then we have some suggestions.
Value & Sustainability
In this context, we mean that you should not purchase in a place, at a time, where the selling price is not forecasted to stay consistent. One thing to look out for, as far as vacation rentals go, is how the area in which the home is situated has been performing, regarding visitation trends in the tourism industry.
Most wise vacation rentals will be situated within reasonably tourist-based economies, in our opinion. Whether it’s a cottage in wine country, a bungalow in the city, or a condo in Hawaii, each will come with its own set of seasonal wisdom to become acquainted with before purchasing.
One thing to beware of is purchasing at a high price during a tourism boom that doesn’t look to be sustainable, or places that only draw tourism for a very small portion of the year. There are certain places, however, that promise the potential of nearly year-round popularity that bring the possibility of delivering a high return on your investment. In California, for example, it would be the difference between investing the same amount in San Jose as you could in Santa Monica; while Santa Monica delivers a vibrant, beachy, and enjoyable energy on basically a year-round basis, San Jose does not offer the same access to popular tourism-related industries, nor is it comparatively affordable in a cost-efficient way.
West Isn’t The Best
Although California offers a lot of draw, the property values in places like San Francisco have gone through the roof (and then some). We suggest looking east.
Cities like New Orleans, especially since Hurricane Katrina, offer a high return on your investment. New Orleans runs on an opposite tourism schedule than many other North American cities, however, with the fall, winter, and early spring being the prime time for visitors, and the summer bringing unbelievable heat with no practical way of cooling yourself off. Besides, if you’re looking for something a little bit less “mainstream” we might suggest that you head up and over to the Outer Banks of North Carolina.
The Outer Banks are quite dependent on tourism, and have a loyal and sustainable demographic for year round visitation, with a massive spike in the summer. It sure gets hot there, but the immediate access to the water, and the prominence of beach culture, make it just the right type of place to be. As it is an area that depends so deeply on the tourism industry, there are great resources that aid potential buyers in locating the property that is perfect for them. As one of the biggest agencies in the entire region, Twiddy & Company would be a great place to start. Although they are primarily known for managing rental properties and matching them with renters, Twiddy is also an established real estate agency for the area, specializing in Outer Banks vacation rentals, among other things.
Twiddy & Company are absolute experts on closing deals that fit perfectly within your preferred budget. The Outer Banks are an extremely popular tourist destination, with massive visitation numbers, but if you browse around on their website and crunch the numbers, you will find that many of their properties deliver better value than most options in other American tourist-centered areas, such as Hawaii, Arizona, California, Colorado, and Park City/Utah. This is especially significant when you consider how few island getaways exist in immediate vicinity to mainland, and the fact that Nags Head in the Outer Banks is often considered one of the best beaches in the entire country!
East Coast beach property has the potential to actualize itself as a significantly important and wise investment, and the Outer Banks offer incredible value if you are looking to purchase a vacation home. Another benefit, of course, is that you will always have the ability to vacation within your own vacation home for free, and many people choose to ultimately retire there, often after the investment has spent years paying its own expenses, diversifying its portfolio, and supplying valuable financial leverage.
Just as the west isn’t the best; the east is not the least. We hate to engage in such cliches, but this claim is not at all an exaggeration. We believe that the right investment into an east coast beach property, if guided by professionals and thought out with enough tact, can actually be one of the wisest and most beneficial real estate investments that you could make, should you intend to actively improve your quality of life.