Should I Invest In A Vacation Property?

You loved the house you rented at the beach. The ski-in, ski-out condo you rented over the holidays was perfect for your family. Your lanai overlooking the 4th tee at the golf resort was amazing. The leaves at peak color all around the cabin you rented in the mountains reminded you of your childhood.

Now you’re thinking about investing in a vacation property of your own. After all, you’ve been renting from other people who own vacation investment properties. Why shouldn’t you consider buying a vacation home yourself?

Vacation Properties By The Numbers

The 2017 National Association for Realtors (NAR) Investment and Vacation Home Buyer’s Survey separates buyers into two categories — vacation home buyers and investors.

Average buyers plan to use vacation homes mostly for personal stays, renting them out an average of 30 days or less per year while investors expect to rent out their vacation properties all year with a mix of short-term and more extended rentals.

The NAR reports vacation home buyers represent 12% of residential sales. Many of these bought a vacation home for family enjoyment or to convert to a new residence in the future. Others because they found a good deal on a reduced-price property.