Should You Sell Your Vacation Home For a Profit or Keep it and Rent It Out?
Should you try to sell your vacation home now, while demand for rental property is high and prices are higher than they’ve been in years? Is this, however, a wise decision?
While it would be improper to state that the coronavirus pandemic is over, significant progress has been made in that area, even if the new Delta variety has caused case numbers to rise recently.
However, many vacationers prefer private vacation homes to hotels, which is unsurprising. These homes not only provide more excellent space and privacy, but they can also be a safer option for families with unvaccinated children.
Airbnb recorded a 52 percent year-over-year rise in bookings in the first quarter of 2021. (YOY). While reservations may drop later in the year, many people are racing to take advantage of the summer season by scheduling holidays now, while schools are out of session and families have more flexibility to get away. Last summertime travel also allowed for more outside activities, safer for families with children who have not been vaccinated.
As a real estate investor with vacation home, you are well-positioned to profit from the upcoming summer rental property boom.
Selling Your Vacation Home is a Tough Call
According to the Nigeria Consumer Price Index, home prices increased by 14.6 percent in April. As a result, if you list your home now, you’ll have a good chance of getting top Naira.
Currently, there is a scarcity of available residences on the market, including vacation rental properties. Because mortgage rates are reaching historic lows, many investors want to add a short-term rental property to their portfolios. As a result, if you sell today, you’ll almost certainly receive a flurry of reasonable offers.
On the other side, keep your vacation home. You’ll be able to take advantage of the remaining summer rush, which will almost certainly extend not only into the fall but also into the holiday season. That’s a good enough reason not to sell.
So, what’s the best course of action? In the end, it’s a personal choice that only you can decide. However, if your vacation home is functioning well and has the potential to draw people throughout the year, it may be worthwhile to maintain it. On the other hand, if you sell it, you might be able to walk away with a nice sum of money.
But where will you put that money? Due to rising housing prices and poor inventory, you may find yourself with few options if you want to upgrade to a larger holiday home. For that reason alone, delaying the sale of your current home may be advantageous.
Of course, selling a vacation property today is a good move if you’ve wanted to free up cash to add real estate investment trusts (REITs) to your portfolio. However, if you choose to sell, you must accept the chance that you may not be able to replace the property in your portfolio anytime soon. That’s just the way things are going in the market right now.
Should Your Rental Property Be Listed on Niche Vacation Rental Platforms?
Marketing a vacation rental property to specialty groups rather than the broader public may appear contradictory. Why limit your audience to a specific demographic when anybody could visit? Is it a bright idea to segregate vacation rental offers as a home for parents, the LGBT community, or Asian guests? Will this tactic payout, or will it backfire? Let’s have a look at this.
Why Do Landlords Use Niche Rental Property Sites?
Many hosts sell their vacation rental by emphasizing distinctive attributes to make it stand out among the crowd. For example, “Luxury City Center Loft on a Traffic-Free Street” is in the ever-increasing hunt to get a vacation rental booked, especially in high-competition locations. One way to make a list stand out is to promote appealing qualities.
A niche vacation rental platform, such as one that caters to youngsters, dogs, the LGBT community, or is marketed as an Asian-friendly location, is another approach to sell a short-term rental.
People seeking a home that allows pets or has highchairs and childproof rooms for babies and small children are likely to limit their search to sites that meet their needs.
But what about looking for a short-term rental that caters to homosexual couples or persons of a particular ethnicity? Some people prefer to rent a holiday home from a group of like-minded hosts who cater to various racial, ethnic, and gender groupings.
Rental Property Unfair Advantages: How It Became a Billionaire Factory
You’re surely aware that real estate has long been a playground for the wealthy and well-connected and that it has also been the most significant performing investment in modern history, according to recently published data. It’s easy to see why given a set of unfair benefits unheard of in other investments. But those boundaries have crumbled, and now it’s possible to generate REAL wealth through real estate for a fraction of what it used to cost, allowing you to take advantage of previously unattainable advantages.
Vacation homes are one sector of real estate investing that has really taken off this year. Travelers have changed from booking hotels to desiring more privacy and space when on vacation, and demand for these properties has been high since the onset of the pandemic.
If you own a beach house, your short-term winter rental may be challenging to sell. On the other hand, if you run a ski lodge, the beginning of the year may be your busiest season for bookings.
In any case, now is the time to start crunching data and conducting research to figure out how to price your rental in the coming year. Keep in mind that you could be able to get a higher rental price than you would typically get due to the great demand. Look at what other properties in the area are asking for rent and devise a plan that works for you.
Some people claim that renting from a place that caters to their demographic is safer. If vacation rental hosts discover a popular niche with a greater demand for what they have to give than there is supply, they should use niche marketing.
Others want a three-bedroom home within walking distance of the beach, regardless of who they are or how they identify. Renting out a vacation home is both an art and a science, and hosts should usually do whatever is most profitable for them — assuming they want to stay in business.