Thursday, March 24, 2016

Key West Vacation Rental Properties Are Great Investments

Key West Vacation Rental Properties Are Great Investments 
Mediocre investment rental properties are separated from great ones by a number of factors. One of the most important factors is the truism that it is "location, location, location" that is most vital when making a purchase. Of course, the reason that this cliche has lasted so long is because there is a great deal of truth in it. If you head to an undesirable location and buy a great looking home, you have a great looking home in an undesirable location. It may be stylish and be equipped with many creature comforts, but its value will be substantially suppressed by its location.

To make smart choices, a property investor must begin by thinking strategically. This means that investors must first think about their purchase of rental property as an investment. People head out for their vacations and stay in destination locations to have some fun during their free time. On the other hand, people living full time in these tourist destinations also need a place to live.

Why You Can Find Great Investment Opportunities In Key West Rental Income Properties

The Key West economy relies on the tourist industry and the annual visits of hundreds of thousands of tourists. People living and working in that industry require a place to live. This means that real estate investors have two robust streams of income when they invest in rental properties in the area.

In fact, location matters so much that a rental property in an area like this has more benefits than those found within ordinary neighborhoods. The two primary benefits include shorter vacancy periods and higher rents. In Key West, a destination area, rents are higher for both full time renters living and working in the region as well as for short term vacation stays. In addition, there are very short vacancy periods between rentals. In fact, those vacancies will be periodic and short.

In addition, because of the rental home' location in a destination area, it will appreciate more rapidly in value. The eventual return will be higher, even though the entry price is higher than is found in properties found within ordinary residential areas. This works especially well for long-term investors who hold onto property for many years and plan on cashing in much later for a larger profit.

Because there are so many mortgage financing options that are affordable and with interest rates near historic lows, conditions are favorable for investors ready to make a purchase now. Those that do so can purchase more properties in the future because they will have a substantial amount of collateral leverage.

No comments: