Why I Invest in Vacation Rental Property in Kenya
December Holiday is fast approaching and if I may pose a simple question to you as you read this amazing article! Have you ever thought about how to invest in Vacation Rental Property in Kenya For a short-term family vacation rental use?
Actually it can be a big risk to venture into the world of luxury vacation home real estate investment but trust me that investing now on a fractional luxurious vacation rental home is the latest concept that’s gaining a lot of popularity here in Kenya. It has been tipped as the most economical way to own luxurious holiday home in Kenya and forever a fractional luxury property investor!
Picture yourself, home from home in Malindi Kenya, returning each and every year to a property you can really call home. Shared with like-minded owners, each of you buy a 1/10th share in a company where collectively you own a beautiful property. Everyone has 1week annual residency where the property is exclusively yours to enjoy. Visit now our offices and learn how to invest in Vacation Rental Property in Kenya.
Investing in vacation rental property in Kenya has a lot of benefits and in this article, we have listed the most compelling reasons why we think you should highly consider investing in vacation rental property in Kenya.
An Opportunity to own a prime Dual Purpose Property
By any chance if you are venturing into real estate sector investment, then am pretty sure you are definitely considering all the options and trying to figure out what’s ideal investing option for you!
Actually if you invest in vacation rental property in Kenya right now, you enjoy dual purposes of the property! It sounds cool? Yes you can use it as a second home and spend your own holiday vacations there with your lovely family, and even later on rent it out to guests the rest of the year and make some extra rental income! Did you knew that buying an investment property for the main purpose of renting it out long-term does not give you this luxurious vacation option with your family?
Generate some Extra Rental Income from your Vacation Property
Definitely majority of us invest hugely in rental properties with the sole objective of making steady income through the monthly rental income!
The idea is that you will be renting out your second vacation home to guests when you aren’t using it. You’ll be making extra money without having to necessarily buy an “investment” property. After all, your vacation home is your second home. It just happens to make money on the side.
When you invest in vacation property Kenya Home and use it as a short-term rental, the income you normally make from bookings actually helps you pay the mortgage and other expenses (property tax, insurance, maintenance, and repairs) for the place where you spend your luxury family vacations.
Enjoy High Vacation Property Value through Appreciation
In addition to generating income in the short run, a vacation rental property in Kenya home also makes money – potentially a lot of it – in the long term.
A second luxury vacation home is a real estate property, and any real estate property generally appreciates in value over time. When you are ready to sell your vacation rental property in Kenya, you can usually sell it at a higher price and cash in on the profit. The best part is that you don’t have to do anything to enjoy this benefit. Natural real estate appreciation will take care of it.
If you want to make even more money when selling your vacation rental property in Kenya, you can make modifications and improvements to push up the market value of your vacation rental (known as forced appreciation).
Vacation Rental Property in Kenya Investment is a low risk plan
Investing in vacation rental property exposes you to lower risk than other types of real estate investment in Kenya. First, vacation rental homes in Kenya are in top tourist destinations, so you can attract lots of guests, reach high occupancy rates, and charge a high nightly rate.
The combined effect is high rental income. And rental income is how investors make money from their rental properties.
One way to reduce your risk even further is to choose a location and a property that works as either a traditional, long-term rental or as a short-term rental. If you find that you have a low occupancy rate, low rental income, and negative cash flow, you have the option to switch strategies and become a traditional landlord.
And in the worst case scenario, if a long-term rental strategy also fails to bring you a positive cash flow, you still have a second home to use with your family. This will save you the cost of renting hotels or other people’s vacation homes until your property has appreciated enough in value to sell it. After all, if your vacation rental is located in a popular destination, appreciation should not take more than a few years to kick in.