Vacation homes have become popular as times got hard, Reuters' report pointed out. However, their popularity only extends as far as their use. The people in the US go to these vacation homes because of their value as rental homes, and not for anything else like vacationing.
Tom Shapiro, president of GoldenTree Insite Partners, said that the fundamentals of renting vacation homes are returning. Those same fundamentals, he added, did not describe the state of the real estate market somehow, which was still affected by the downturn. This was his message to those in attendance during Reuters' Global Real Estate Summit, which happened during the week.
With many investors present at the event and figures such as Richard Parkus of the Deutsche Bank as well as Jacques Gordon of LaSalle Investment Management, the real thought behind it all is to invest in properties that are flexible--a vacation home and a rental property both at the same time. The best time to buy a vacation home is now, they unilaterally point out, when prices are low and the choices are great.
Curbed's report is an insight into how these homes can become an asset.
Consider the case of Airbnb, which has become a global phenomenon. From a small start-up, it has grown into what it is now on the strength of people renting vacation homes at an unprecedented rate. People with the cash and the means to buy a second home did so, with the vision of turning these homes into money-making investments.
Airbnb lets people search for homes which are near vacation destinations or cities where they have business to attend to. Once they choose a home, Airbnb facilitates the payment between client and homeowner and the client gets to stay in the home for a set amount of time. This extra cash is what keeps people who are not so fortunate with their finances ashore during the period of the US' downturn.
Properties that were once sold or on the market once owners need extra money have seen a different use. In vacation destinations, homeowners have seen their properties become sought-after, giving them another source of passive income aside from the current one that they already have.
To be frank, the home rental business has been around for as long as people have been vacationing in droves. With the help of Airbnb and the current downturn, however, it's never been more vibrant and alive as it is now.
