Skip to main content

Why investment in Holiday Homes fetch higher returns than other Assets


As we all aspire with the idea of investing and growing our hard earned money so we can achieve our financial goals one day. Once the most successful Investor in a history of mankind Warren Buffet quoted 2 important rules for Investing. "No. 1 never loose your money and 2nd never forget rule no. 1". So taking his advice into consideration there is only one asset class where the risk of loosing money is least if Invested with proper due diligence is Real Estate. Growing Population and limited availability make it most least risky asset class among all. So today we will explore very less talk about real estate asset Holiday Homes , its benefits and why Investing in Holiday homes is a better option in comparison to other real estate assets in the market place. So be with us if you are seriously looking for an Investment which can get you better lifestyle and high returns. 

 1) Self usage- First and the most appealing feature of investing in a holiday home is that you can use your asset at any point of time and enjoy a memorable fun-filled holiday with your family & Friends and upgrade your lifestyle. You always strive to give better life to your loved ones your wife , your kids and your parents. Instead gifting liabilities , gifting a lifelong asset to your family is the wonderful idea, don't you agree? Such Investment also considered to be hot as it's useful and can be enjoyed frequently as compared to other cold investments which are not accessible for you to use.

 2)High Rental Yield- As the travel industry is growing it is expected to reach 900 billion dollar industry by 2025 globally the demand for personalised spaces are growing in post Covid scenario. With a Shared economy boom BNB rentals and Short term rental industry is growing at a Pace of 30% CAGR. In an Interview Airbnb CEO mentioned India as the largest short term rental market in the world due to its rich culture and diversity. Hence making an Investment in Holiday homes at Popular Holiday destination can fetch you rental returns anywhere between 6-24% annually which is way higher than any other type of rentals i.e. Commercial , Residential or Institutional which maximum goes upto 8% and post Covid and trend of remote working and e-commerce it's expected to come down more in coming times. 

 3) High Capital Gains- As we all know Residential real estate always offer highest IRR in compare to CRE or any other asset class in this category as Commercial Real Estate (CRE) always work on reverse calculation when it's comes to buying and selling as the sole purpose of the asset is churn rental yield out of it rather any emotional angle to it. Where as Residential property works on supply and demand algorithm hence it grows exponentially in long run as it's bought majorly on emotional factors such as convenience , comfort and security and Holiday homes are just that only. So you holiday home or second home can be the first home for some one in near future and fetch you high returns beyond your expectation. 

 4) Outperformed Track Record- If you go back to late 90s or early 20s there were some destinations where people use to buy there second homes , farm houses and as a vacation homes for as a weekend gateways and now has become the IT and Commercial hubs which have created a huge demand for primary homes and given 20-30X returns to Investors. For example in late 90s Gurgaon was considered to be a second home destination for delhites and people buy farm houses and weekend homes there and on 2021 Gurgaon is the more popular and demanding destination for primary home buyers and grown exponentially in a specific period of time. Like this there are many other Destinations in India which are relatively becoming a favorite choice for primary homes as well. Some most popular ones are Goa , Ooty , Kasauli , Rishikesh , Lonavla and many more.

 5) Pride of Ownership- Last but not the least , we accept it or not but we all love to brag whether its a new car we bought , or a piece of jewellery or something very small but we all do it specially in front of our relatives and friends. So bragging about your hilltop Cabana with a panoramic Himalayan View or a Portugese style contemporary villa at beach front will be a cherry on top as it's offer you a sense of real pride of ownership , you own something which top 1% people in the world and ultra rich usually own and now you are a part of that community. So here are the top five reasons why Investing in a holiday home is always a better idea.

Comments

Post a Comment

Popular posts from this blog

BRIKitt Stays Booking FAQ's

HOW MUCH TIME WILL I HAVE IN MY HOME EACH YEAR? Your access depends on the number of BRIKs you own. Each BRIKs includes 30 stay nights, and they are tracked on a 365-day basis. For example, if your ownership anniversary date is October 20, 2020, we’d count the total number of stayed nights between October 21, 2020, and October 20, 2021. WHAT IF I WANT TO ENJOY MORE STAYS IN MY HOME? As a benefit to owners, you are invited to enjoy stay nights that exceed your annual stay night threshold of 30 nights, pending home availability. A modest nightly operating fee is assessed to cover operating and ownership costs. The fee is used to offset costs for other owners, and there is no markup added. Owners will find rates to be dramatically less than booking a similar, non-Brikitt home. HOW DOES THE BOOKING APP WORK? The BRIK Owners app is powered by our AI based smart booking system. It’s easy to use and equitable for owners based on their number of BRIKs owned. The app displays real-time availabi
Post a Comment
Read more

How BRIKitt can unlock your financial freedom through Wealth Creating Assets

At some point of time we all want to be financially free and live a dream life with our loved ones as our own term without a day to day struggle and hassle but eventually only 1% of us only able to achieve financial freedom. Have you ever wondered why? To be financially free in today's world one needs to have a minimum of 7 streams of Income and most of them has to be passive. But most of us has a very little or no knowledge of what passive income actually is and how to create wealth with it. With a decade of experience and Research BRIKitt has created a tool through which you can generate multiple passive incomes and upgrade your living standards at the same time. BRIKitt PHILOSOPHY After years of research and studying different financials models all across the globe and observing evolution of world economics we have created a tried and tested tool which can fulfill all your dreams and desires with just an easy and simple way through an asset class which is only and only affordabl
Post a Comment
Read more

Why Fractional Ownership is better than Owning a whole Vacation Home

Fractional ownership An introduction As we all know, fractional ownership as a concept is developing fast these days and emerging as a popular investment option in India. It is primarily because of the dual advantage it provides i.e rental income and capital appreciation. It is considered to be quite an affordable way to make property investments. It also provides a unique opportunity for the investors to come together and combine their resources to collectively own a high-value property. Fractional ownership pros and cons can help you understand the concept in more detail and how it is changing the whole real estate scenario. Is Fractional ownership a good investment In fractional ownership, you can own a share of the real estate and are issued the deed for the property, but not a time that you can use the home. This keeps the cost relatively low compared to whole ownership and you still have access to the home if you are satisfied. With fractional ownership, your share of the real e
Post a Comment
Read more