The very first step in purchasing real estate to double as a holiday home and investment property is to do the initial holiday home investment sums to get a clear picture of revenues and expenses and ensure the decision is a sound one. The next step is to think strategically about the property as a product as well as an investment wit the help of realtor Dallas.
Holiday Home Capital Gains
By virtue of being in high-demand locations, holiday homes are often in areas of high capital growth. The sea-change effect has seen many holiday-let investment properties by the beach triple or quadruple in value over the past decade and often holiday home owners consider this sufficient compensation for sporadic returns, particularly in regional locations. Hence, it may be the popular holiday destination currently is not the best place to buy for long-term price growth, while locations close by may have greater potential for growth as both holiday makers, investors and sea-change enthusiasts discover the area in years to come.
Fortunately, the same rules apply to both strong capital gain and high occupancy rates when it comes to holiday homes and that is the age-old catch cry: position, position, position. While holiday locations may enjoy less services than the inner-city, it is still extremely important to choose a property in the closest possible proximity to the area’s key attractions. Beaches, shops, restaurants, ski-slopes; ensure holiday makers must sacrifice minimum relaxation time to travel. Being within commuting distance of key employment centres may also be of benefit for long-term investors, broadening the pool of potential buyers down the track.
Marketing Holiday-Let Investment Properties
Unlike a permanent rentals, the holiday-let investment property must be constantly marketed to ensure maximum returns. A host of websites are dedicated to short-term rental properties, however competition can be stiff and savvy investors know holiday letting must be approached as a business decision in order to build goodwill and return customers.
Ascertain the target market, be it families, luxury travelers, or budget holiday makers, and tailor the marketing to suit. Families, for instance, usually appreciate maximum accommodation so bunk beds are a great option as well as dual bathrooms and large entertaining or dining areas. Key competitors in the luxury travel market may be five-star hotels however, so little features such as a local restaurant guide, an arrival gift basket or supplied bathroom products could make a holiday home standout from other short-term rentals in a similar class.
Highlighting these features, both with quality photographs and advertising copy in online advertising can make a big difference to occupancy rates and forward bookings. Tailoring a property’s marketing to the area as well as the customer can also be successful. Tap into an area’s key appeal and ‘theme’ the property along the same lines, for example whitewashed can furniture, nautical stripes and shell motifs may be very effective in ‘painting the picture’ for holiday makers seeking a true beach atmosphere whereas if the holiday let investment property is set in the hinterland setting the scene with traditional country cottage furnishings can create a true tree-hugger’s escape.