Owning your own vacation house allows you to enjoy a favorite part of your world while investing your savings rather than giving money to someone else in the form of rent. Any appreciation in the value of the vacation house is really a bonus. There are several factors however that can make a co-owned vacation home a great investment, especially in these changing times.
The greatest driver of appreciation is the location of a vacation home. Beachfront, waterfront, or access to ski trails — these drive the value that people place on a vacation home. When on vacation, folks don’t want to commute to the fun. They also want a place that is near their primary residence. 70% of second home purchasers are looking for a place they can drive to as opposed to flying. If the location has multi-seasonal appeal, It will be attractive to larger groups of buyers. For example, a house that is near a ski resort, could also be near great hiking or mountain biking in the offseason. All these factors can help assure a healthy return on investment when it comes time to sell your vacation home.
There is a greater demand for vacation homes now, as folks have learned that they can be productive workers in locations remote from the home office. Even if they don’t plan to work remotely full time, many people appreciate the ability to work while enjoying the amenities of a well appointed vacation home. They can ski for a couple hours in the morning and still put in a full day writing code or developing strategies for their next marketing campaign. This increase in demand means that most vacation homes will increase in value as they allow their owners to work well from home.
There is a greater demand for vacation homes now, as folks have learned that they can be productive workers in locations remote from the home office. Even if they don’t plan to work remotely full time, many people appreciate the ability to work while enjoying the amenities of a well appointed vacation home. They can ski for a couple hours in the morning and still put in a full day writing code or developing strategies for their next marketing campaign. This increase in demand means that most vacation homes will increase in value as they allow their owners to work well from home.
Co-ownership of a vacation home helps to amplify all of these factors affecting home value. More owners allow you to afford a better house for example, you can afford ⅛ of a luxury beachfront property that will appreciate more rapidly than a small condo a short drive from the beach. It might be difficult to work fulltime from a remote cabin near your favorite fishing stream, but a week every month might be perfect. Sharing the upkeep and maintenance of a house with several other owners, would allow you to hold on to the property for a longer period of time and achieve a better return on your investment.
All investments have risks, and no one can guarantee a huge return on investment, but when you purchase a share of a vacation house, you do ensure that you and your family have a great spot to enjoy time together and build memories.
