The growing trend of tourists staying in vacation rentals, rather than hotels, is opening up many lucrative opportunities for real estate investors. Thanks to the increasing popularity of rental portals such as Airbnb, HomeAway, and VRBO, there are currently 297 million vacation rental users worldwide, and the 2019 projected revenue of vacation rentals is $56.67 billion. Airbnb alone has 150 million users worldwide, and by 2020, vacation rentals are expected to topple the hotel industry. (Source)
There are many benefits to buying a beachfront rental property, whether you’re a beginner or experienced real estate investor. Purchasing a beachfront home can bring a high return on investment, a reliable income stream, and personal access to a desirable vacation locale.
Let’s look at the top benefits of investing in a beachfront vacation property, and why choosing a condo over other types of homes, makes the most sense.
There’s less risk.
Investing in a vacation rental exposes you to lower risk than investing in other types of real estate. Vacation homes in top tourist destinations attract many guests. Therefore, it's easy to maintain high occupancy levels, and you can charge a higher nightly rate, resulting in more income.
Vacationers like to rent a condo because it's similar to staying at a hotel. With on-site amenities and activities, it brings people together for shared social experiences, which a single home does not offer.
You’ll have a dual-use property.
You and your family will surely enjoy making memories at your vacation home, while still generating income renting it out the rest of the year.
Many real estate investors purchase beachfront condos in warm-weather climates that they rent out during peak travel times, such as cold winters and holidays. The best part is that many investors claim that their rental income from this peak period alone, covers their home expenses – like loan payments, property tax, insurance, and repairs - for the entire year. Which means they can live in the condo for free during non-peak times.
Real estate appreciates.
Real estate appreciation is another advantage of owning a vacation home, as it assures that you’ll make money in the long-term if and when you decide to sell it. Vacation rentals, especially beachfront condos, are always in high demand from prospective renters, which means that the value of your property is continuously increasing. It’s making money while you sleep.
When you do sell, you’ll likely be able to sell it at a higher price. This allows you to cash in on the profits and use that to finance another investment property or use it towards your retirement. The best part is that you don’t have to do anything to enjoy this benefit, as real estate naturally appreciates on its own.
Location, location, location.
It’s no secret that location is the number one most important factor when it comes to real estate investing, especially when purchasing a vacation home. You want to choose a destination where other travelers – besides you and your family and friends – want to go.
Why buy in Belize?
Legacy Global Development, the developer of the luxurious Orchid Bay, Belize community, recently announced that it had a significant increase in home sales for 2019. This surge in sales is thanks to Belize's rise in tourism and the many benefits that the country offers homebuyers.
In 2018, Belize saw record growth of overnight tourists for each month of the year, over the same month in 2017. In total, Belize welcomed 489,261 visitors, a 14.6 percent increase from the year prior, and this was the most substantial rise seen in the past 10 years.
Belize is appealing to tourists for many reasons. Its official language is English. It borders Mexico and is only a 2-hour flight from major U.S. cities, and US Dollars are accepted everywhere. It is also one of the few safe, tropical destinations that has preserved its gorgeous environment, unique wildlife, and exotic culture.
On the real estate side, Belize offers several attractive benefits to home buyers. All real estate contracts are in English, there are low property taxes, and no estate or capital gains taxes. Additionally, assets are protected by British Common Law, and the country allows 100 percent foreign ownership of properties and businesses.
Why in invest at Orchid Bay, Belize?
Located in northern Belize, Orchid Bay is a gated, master-planned community situated in the Bay of Chetumal. It combines North American comforts with a spectacular Caribbean setting. The development was influenced by innovations in community design that reveal small-town accessibility, connectivity, and convenience — all with respect to the natural environment.
On-site amenities include the Tradewinds Beach Club and Restaurant, as well as a 7,700-square foot beach club with multiple swimming pools, a gym, restaurant, bar, lounging decks, and private beach access, which is currently under development. An on-site grocery store and medical clinic are also projected to open in the future.
Why buy a Beachfront Condo?
The advantages of purchasing a beachfront condo are that it’s more affordable than buying a villa, and the shared spaces are maintained for you. Location, again, is a huge factor. Vacationers want to be on the beach or as close to it as possible. Being a stone’s throw away from the sea assures that you’ll always have renters. A condo is also the perfect size for a small group, and it can comfortably accommodate extra guests.
Tower-C is the third Beachfront Condo structure to be built at Orchid Bay. Tower-A and Tower-B Condos were all sold in 2016. They will feature updated enhancements including high-end finishes, exceptional design and layout, an elevator, and are only steps away from the Caribbean Sea. Prices start in the high-$300,000s.
Each 1,570-square foot Tower-C Beachfront Condo will have two bedrooms, two full bathrooms, and will comfortably sleep four to six people. Its spacious layout features an open concept gourmet kitchen with center island, which overlooks the living room and dining area. Each sea-facing Condo has two private outdoor terraces, at least one which provides unobstructed water views, allowing residents to watch the tide from sunrise to sunset.
Another valuable advantage of buying at Orchid Bay is its Rental Program. This is an optional program available to homeowners that comes with a 3-year rental guarantee. It handles all the advertising, marketing, communication with renters, and all other logistics for renting out your condo, so you can sit back and relax while generating passive revenue.
As the Rental Program is optional, owners who don't participate can rent out their condo on their own, as they choose.
If you are looking to buy on the beach, you can’t go wrong. It brings an excellent return on your investment, gives you a steady income, and you have your very own beachfront getaway, which becomes your home away from home.