The National Association of Realtors recently released their 2016 Investment and Vacation Home Buyers Survey. The survey revealed many characteristics of both vacation home purchasers and investors.
The survey found that vacation-home sales last year declined to an estimated 920,000, down 18.5% from their most recent peak level of 1.13 million in 2014. However, this is still the second highest number of vacation sales since 2006.
Your vacation property can do more for you than just provide you with a home away from home; it can also provide you with extra income.
This is achieved by turning it into a rental property. When you aren’t using it, other people can be, and you can derive an income from that.
There are several “online vacation rental marketplaces” — websites where people can list what they offer in a searchable database. What they offer can consist of anything from a spare couch to a private room to an entire home or condo.
Your vacation home property — and for the purpose of this article we’re going to assume it’s an actual home and not a spare bed! — may be just a couple hours away, or it may be all the way across country.
If it is more than halfway across country, or if it isn’t convenient for you to get to it every other week or so, then you have two options.
You can hire a property management company to take care of all of the details of the property for you.
You can handle all the issues regarding the property yourself, as a “remote” manager.
Each option has its own pros and cons. which will be explained further on my next blog.
Lawrence Yun, NAR’s chief economist explained:
"The expanding pool of buyers amidst a dwindling number of bargain-priced properties led to tighter supply and fewer sales and caused the price of vacation homes to rise. Furthermore, the turbulence that hit the financial markets the second half of the year likely seized some would-be buyers' available cash."
As Yun mentioned, the sales price of vacation homes rose in 2015:
I will be providing an infographic that will highlight the other findings about vacation home sales from the survey, and in two weeks, I'll report on the investor side of NAR’s survey.
Monica is a motivated realtor specializing in residential & investment buyers located in the following areas; Miami Beach,Surfside, Bal Harbour, Bay Harbor Islands, Surfside, Sunny Isles Beach, Aventura and surrounding areas. She knows those ideal vacation home investment buildings. For help with buying or selling a property call 305-785-1688!