The property market is exciting again after signs of steady growth. More investors are entering the market, focusing their investments on commercial buildings and residential properties. Aside from these two major groups, there is also an exciting market segment shaping up to be very interesting: the rental property market.
Investing in a holiday home can be a great addition to your portfolio. There are high prices, a long list of locations to choose from, and other advantages, which you will quickly discover as you venture into this particular investment opportunity, which makes the market even more attractive.
A Growing Demand
The simple answer to that question is YES. As the travel industry grows, the demand for more holiday rentals in or near beautiful holiday destinations grows alongside it. This increasing demand sparks a slow but steady price hike, which means there is more income potential to expect from an investment in a holiday home.
The growing demand for holiday rentals also means a higher occupancy rate. In the rental property market, the most significant expense is owning a rental property that stays empty for an extended period since you’ll still have to pay for insurance and maintenance, as well as cover other costs of ownership (i.e., the mortgage payments).
High occupancy rates turn a rental property investment into a relatively safe one. The current demand even outweighs the available supplies in prime locations such as Malta and Gozo. This was a major takeaway from an interview I had with Alex, director at luxuryvillasmalta.com.
Access to Opportunities
Investing in a holiday home is just the first step, thanks to the internet and the many platforms available today, you can quickly reach the right target tenants through online booking sites and apps.
You can also make the investment easier to manage by working with a property management firm. The firm will take care of everything for you, from creating a good marketing kit for the property to accepting payments and maintaining the property.
The more significant access to opportunities to earn revenue from the holiday home breaks down any remaining entry barrier to this investment. You no longer have to absorb risks such not being able to reach the right potential customers or difficulties in managing properties in different locations. There are resources to help you tackle those challenges without hassle.
Similar to investing in other properties, spending in a holiday home also allows you to enjoy a healthy gain on your investment in the long run. The world’s property market may still be in recovery after the last major crisis in 2008, but that’s a great thing for investors.
Right now, the market for holiday homes offers excellent prices and high potential gains. If you are not happy with the market or the way the investment is going, the growing demand for rental properties also means you can find a suitable buyer and capitalize on the gain in value at any point in your investment.
That brings us to our initial question. Is it wise to invest in a holiday home? Based on the opportunities we have discussed in this article and other market factors, investing in a holiday home is one of the best ways you can strengthen your investment portfolio today. And there is no better time to enter the market than today.
Find an investment opportunity that suits you personally and start capitalizing on all of the opportunities we have today.
Elena is an experienced investor and a writer for luxuryvillasmalta.com. She regularly coaches new investors and loves to share her thoughts and experience in the property market, especially rental property investments.