Have you ever thought about investing in vacation homes? They are an interesting investment choice that is worth looking at. If you’ve been weighing your options, keep reading for 4 pros to investing in vacation homes in NY…
There are many different kinds of investing – from rehabs to rentals… and even to vacation homes. If you are thinking about what kind of real estate investing you want to get involved with, one option to consider is to rent out vacation homes to people on vacation. Here are 4 pros to investing in vacation homes in NY…
4 Pros To Investing In Vacation Homes In NY
Pro #1. Higher Rent
Most vacation home rentals are short-term rentals, which means you can typically charge more for the rental. The exact amount will be determined by the market and the demand and the location but some vacation home rentals are as much as five, ten times, or even twenty times higher than regular rental properties.
Of course, this kind of rental might come with higher costs but the higher rent is a nice way to more than offset those higher costs!
Pro #2. Short Term Rentals
Most vacation renters will rent vacation homes for a short term – perhaps a week or even a couple of months, but rarely more than that. Although there are drawbacks to this, it’s also a pro because it means that you can rent the property over and over; and if there’s a tenant you don’t like, you know they won’t be around for very long. Just wait until their contract is over and rent it to someone better!
Pro #3. You Can Use
Another bonus is that you can use your vacation property yourself if it’s not in use.
For example, if you rent it out week by week for the summer, there might be a week during which no one is using it and you and your family can enjoy it!
Imagine owning several vacation properties near all your favorite destinations – family vacations were never so profitable!
Pro #4. Tax Incentives
There may be some compelling tax incentives for having a vacation rental property.
For example, you might be able to enjoy a tax-advantaged vacation if you use the property yourself, or (if you don’t use the property at all) then it might be the right fit for your IRA or 401k.
Make sure you talk to your accountant or tax attorney about any tax incentives you might have available to use.
You’ve just read 4 pros to investing in vacation homes in NY. There are many things to think about when deciding what kind of investment property to acquire, and this info will help you decide if it’s right for you.