Real estate prices in popular vacation destinations have recently skyrocketed. This has driven rent prices up with it. If you rent or own a seasonal getaway home, then there are a few things that you can do to save money. You might even be able to profit from some of these shifts in the market.
The Nantucket Case Study
Nantucket, Massachusetts is surprisingly small for a place that’s so popular as a vacation destination. It’s located on a 50-square-mile tract of land that’s south of the Cape Cod area. Due to it’s small size and prime location, real estate prices in Nantucket have been skyrocketing for years.
A four-bedroom residence once went up for sale on the island for slightly under $30 million. Rent costs have been increasing along with the costs of property.
Real estate mogul Louis Ceruzz made a very smart move when he decided to stop renting a home on Nantucket and instead bought a home. He’s the chief executive of a prominent real-estate developer in Connecticut, and he knows a good deal when he sees once. He had been spending his summers on the island in rented homes for 20 years before that.
While renters are free of most of the obligations of owning a home, they have to pay whatever property owners demand. The cost of owning a home in a popular vacation destination can ultimately be lower than the cost of renting one each year.
Some enterprising individuals may even decide to rent out their summer homes during the winter months. This can help to defray the cost of owning the home. It might even be profitable in some situations.
Southern Winter Living Becomes Permanent
Many people who are retired or who work in seasonal industries keep second homes in warm southern states. These individuals often live the rest of the year up north.
This type of a seasonal migration can become quite expensive, but it’s more popular than ever. An estimated 1 million people move to southern states in motorhomes each year. So many people own second homes that analysts haven’t even been able to provide any reliable statistics on the numbers.
Those who are finding the cost of making the trip down south every year are finding that they can sell their northern homes and make their second homes permanent destinations. Real estate prices have rebounded in many areas, which make this sort of a plan possible. It can put cash directly into the pockets of owners as well as help them to avoid a costly trip.
Landlords Sell Off Homes
In a few areas, particularly in the Four Corners region, some people have purchased several different homes near popular vacation destinations with the intent to rent them out. Some of these property owners have found that their homes often sit empty. This can get rather expensive.
This has made some people put a little work into their homes and then list them on the real estate market. Vacationers and seasonal travelers who are looking for bargains have often been paying prices for these homes that help their current owners to take home a decent profit.
Deciding What to Do
If you already own a second home, then you might not want to act too quickly. Take a moment to examine the current market conditions. The same goes for if you’re looking to buy something in a popular destination. Shopping around can help you to find the best deals. Always make sure to do your due diligence before opening your wallet, and you can end up really loving your living situation.
