Buying an Upper Keys Vacation Rental:
Why Waterfront Vacation Rental Homes Make the Best Investment
Savvy property investors know and abide by one ever-present fact--they purchase vacation rental homes in locations where people arrive as destination tourists. This holds to the age-old real estate adage of the three largest factors in a property's value being "location, location, location." No matter how many features and updates a home might have, if it isn't located in a great, thriving, and often visited location, like Lake Gaston, North Carolina, it will never command a high rent or low vacancy rate.
Nestled along a beautiful reservoir, Lake Gaston offers some of the best fishing in the United States, which includes such delights as bluegill, chain pickerel, blue catfish, striped bass, largemouth bass, channel catfish, and walleye. The area is also home to many recreational activities year-round, from boating to sightseeing to the Roanoke Canal Museum and Trail. Visitors also come to hike, wakeboard, ski, and take part in the annual barbeque cook-off and seafood festivals.
Income properties are great long-term investments for individuals and families wanting to expand their portfolios and be put on track to increase their wealth. Such investments become substantial assets, gaining higher property value with increased equity. Experienced real estate investors commonly use these types of properties as leverage collateral for other purchases.
A common hesitation is the entry price, which is higher than purchasing a vacation rental property in a less traveled area. However, the return is considerably higher, what's more, rental rates are also higher while vacancy periods are short and irregular.
Waterfront homes are prime real estate and enjoy year-round demand from tourists traveling to the area for vacation. These homes, like those in Lake Gaston, rent for two days to an entire week or even seasonally. Investors enjoy a passive income stream while vacationers cover the costs of maintenance, property taxes, mortgage, and insurance.
Owning a vacation rental also means having a dedicated place to stay on your schedule. Oftentimes, these homes are used as collateral for future real estate investments and in some instances, become primary residents for retiree investors. This greatly reduces the cost of living during retirement as vacation renters cover expenses while the property continues to appreciate and earn more and more equity.
Now is the time to purchase because of the market timing in the housing sector. Interest rates are near historic lows and lenders, still reeling from what economists estimate to be a total of more than $1 trillion in defaulted loans. This means lost access
