The Covid-19 outbreak has completely transformed our way of life. The value of one's home has increased. For many individuals, the house has evolved into a central location where we work, play, learn, socialise, and unwind.
Previously, rental income or capital appreciation were factors that come into play for purchasers' decisions to purchase a vacation property but the Covid-19 epidemic has made individuals recognise the need of owning a house that is safe and away from metropolitan locations. Let us discuss the benefits and drawbacks of owning a vacation rental.
Benefits of a vacation rental
Because you won't always be able to live in your vacation house, you may rent it out when you're away. Turning it into a rental property, especially if it's in a favourable real estate market, will provide you with a reliable secondary income stream.
Real estate values tend to rise with time, especially in renowned tourist locations. So, even if you don't rent out the home, it may still help you accumulate a significant amount of money over time.
If you travel frequently, having a vacation property might help you save a lot of money on travel costs. Unlike hotels, which have rigid room restrictions, you may tailor your holiday homes to your own requirements and interests.
You may get the same tax exemptions on your vacation property as you would on a normal home. If you borrowed money to buy your vacation property, you can deduct the mortgage interest.
Drawbacks of a vacation rental
Keeping a vacation home in pretty good condition is typically more costly than keeping a regular house in pristine condition, regardless of whether you keep it sealed for the time you aren't using it or rent it out to different people.
You'll also need to employ a caretaker and visit the home on a frequent basis to ensure its security and upkeep.
Expertise is required for finding the correct place, negotiating the best price, and submitting the paperwork. As a result, there exist funds that will take care of this for you.
Hedonova is a private investment fund focused on short-term and holiday rentals throughout Europe and the United States and is also available to Indian investors with a $1000 minimum investment.
According to a recent poll conducted by a real estate company, 82 percent of individuals planned to buy a property in 2021. Thus it can be concluded that holiday houses will remain to be the most favoured real estate sector for purchasers in the 'New World,' surfing on a wave of durability and potential investment.