Looking for an investment or a place to relax after weeks of hard work? Vacation rentals are a viable option. In 2015 and 2016, vacation home sales maintained a higher than average rate, and they’re a viable option for anyone looking for an investment or just a place to relax after weeks of hard work. If you’re interested in purchasing a vacation home, you’ll want to be sure that you’ll actually take the time to enjoy staying there, and you should only purchase a vacation property when you’re financially secure. It’s also important to remember that vacation homes can actually boost your income and add value over time.
John Banczak, executive chairman of TurnKey Vacation Rentals, says a good rule of thumb is for every $100,000 you spend to buy a vacation home, you should aim to make $12,000 to $14,000 of rental income per year.
Keep these factors in mind if you’re wondering if you’re ready to make a purchase.