If you’re considering investing in resort properties ?

If you’re considering investing in resort properties ?

If you’re considering investing in resort properties, there are a few things to keep in mind.
According to a guide by FortuneBuilders, buying a vacation rental property requires a keen understanding of local markets and projected revenue. You need to decide on a location and conduct an in-depth market analysis before making an offer

 

It’s important to note that owning a vacation rental property isn’t just like traditional real estate investing. Unlike a traditional buy-and-hold property, buying a vacation rental means you’re adding a property to your portfolio that will have vacancies throughout the year. The income generated is often dependent on the season 1.

 

If you’re interested in investing in resort community properties, there are pros and cons to consider. According to [realtor.com], buying a property in a resort community can be a great investment, but there can be restrictions and added charges that make resorts less than idyllic

 

Vacation Rental Property ROI
A good vacation rental property ROI will depend on the investment, and the measurement used. Many investors opt for cash-on-cash returns when measuring the profitability of rental properties. This figure accounts for the cash spent up front when making the investment, and returns minus expenses. The cash-on-cash formula is then calculated as:


(Annual Cash Flow / Total Cash Invested) * 100 = Cash on Cash Returns
The final answer should be expressed as a percentage. Many investors shoot for above 10 percent when looking at vacation property rentals, but it can vary. In long-term rentals, for example, common cash on cash returns fall between 5 and 10 percent. But, short-term rentals typically signal a higher rental yield.

 

If you’re looking for specific investment opportunities, OUR HOME PORTUGAL provides a breakdown of different unit types and accommodations that you’ll find at many resorts in Algarve - Cascais - Lisbon and Obidos

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