Five Great Reasons to Invest in Vacation Properties

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Following the crowd is rarely a good idea, especially when it comes to investments. In fact, the biggest economic downturns in history were caused by people over-investing in a particular segment of the economy, like the stock market for example.

“That may be true,” you say, “but there are no real alternatives to the stock market except for real estate, which costs a fortune to get into.” 

If that’s your concern, then we want to share five reasons to put your money into vacation investment property. Here they are:

  1. Consistent returns. 
  2. Low risk.
  3. Immunity to recessions.
  4. Passive, hands-off income. 
  5. Long-term trends in consumer behavior.

Please remember that this information is no substitute for professional investment advice. We recommend consulting with a trained financial specialist before investing in any opportunity. Now let’s take a closer look at those five reasons.

Reason Number One: Consistent Returns

If you follow the stock market, then you’ve probably heard the term “volatility” brought up more than once. It refers to the wild up and down cycles that many stocks follow throughout the course of a typical trading day.

Volatility makes it almost impossible to enjoy consistent, reliable returns. Some people make fortunes in the morning, only to lose them in the afternoon. For most investors, this is simply too much turbulence to deal with.

Vacation investment properties are a completely different type of opportunity. They offer a way to make money without losing your shirt, which is important for preserving the wealth you spent your lifetime creating.

Reason Number Two: Low Risk

Did you know that more than 100 million Americans go on a family vacation each year? This is not some short-term trend or fad, it’s an urge that’s hardwired into the human mind. All of us need relaxation and recreation to maintain our physical and mental health.

At the same time, travelers are no longer satisfied with a dingy, dirty, generic hotel. They prefer to stay in an attractive, well-managed vacation property instead. This creates the perfect low-risk opportunity for savvy investors like you.

Reason Number Three: Immunity to Recessions

Some businesses continue to make steady profits in good times or bad. Examples include grocery stores, accounting offices, healthcare providers, and auto shops. But did you know that the travel and vacation industry is also highly resistant to recessions?

To see proof of this, we need look no further back in history than 2008-2009, the period of what economists now call the “Great Recession.” Thousands of businesses filed for bankruptcy, millions of mortgages went into default, and many stock-based investment firms went bust overnight.

Yet, in the middle of all this turmoil, Americans continued to take time off. They simply scaled back their plans and stayed in private vacation homes instead of hotels. What better way to create recession-proof income than by investing in these properties?

Reason Number Four: Hands-Off Income

House flipping is more popular than ever, and we have to admire the people who earn their living this way. They take a distressed property, pour their money and sweat into it, and, hopefully, turn a profit somewhere down the road. They’re obviously hard workers who are unafraid to take risks.

That’s fine, if you’re what’s known as an “active investor.” But what if you prefer to relax and let your money do all the work for you?

One of the great things about investing in vacation rentals is that all of the day-to-day stuff is handled by someone else. You never have to evict tenants, collect past-due rent, or spend your weekends repairing damaged properties. You simply invest your money and enjoy the returns, easy as that.

Reason Number Five: Post-COVID Consumer Behavior

At the time of this writing, the COVID crisis seems to be waning. But the aftereffects of the pandemic will continue to impact consumer behavior for a very long time to come.

This is especially true when it comes to lodging. People who were once perfectly comfortable staying in hotels now avoid those locations at all costs. They know that the typical hotel is understaffed, overpriced, and often dirty and dangerous. They worry about being exposed to unsanitary conditions and possibly contracting a serious illness.

These concerns provide a stark contrast to the way that the typical vacation investment property is operated. Staying in one of these immaculate, well-managed locations is almost like being at home. They offer a chance for relaxation and peace of mind that dingy hotel rooms will never again be able to provide. This is no passing fad, it’s a long-term shift in what consumers value.

Summing It All up

investing in vacation properties is a stable, low-risk, hands-off way to earn high returns over the long-term. To learn more about this opportunity, set up your free account at here.co today. You’ll soon have the facts you need to take the next step.