Seattle is one of the fastest-growing areas of the country, opening a door to opportunity.
A budding tech industry, continuous population growth and a booming real estate market have made Seattle’s region one of the fastest-growing areas in the country. As a result, thousands of city dwellers will be looking for nearby places to vacation and escape the city. Purchasing a vacation rental home in a popular destination within a short drive from Seattle can be a recession-resistant, multifaceted investment for both your portfolio and your extended family.
Here are five reasons why you should consider purchasing a vacation-rental beach home right now:
- The right rentals perform well even through a recession
The key to a second-home investment lies in the consistent residual income from vacation rentals. Such income is only achieved from vacation rentals that are professionally managed and are located in desirable destinations. With the exponential growth of websites like AirBnB and Homeaway (recently acquired by web-space giant Expedia), vacation rentals are increasingly becoming the preferred choice for travelers. Even through recession periods, the beach town of Seabrook on the Washington coast saw 25 percent annual increases in its vacation-rental revenue.
The vacation-rental industry as a whole is still in its early stage and is positioned for fast growth. Smart real estate investors can capitalize on proven destinations like Seabrook and invest in a second home that will ride out another downturn due to its rentability and desirable location (as previously featured in the Seattle Times).
- You can still get in early in the market cycle
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The second home market was the last land-use segment to enter the early stable stage and it did so just recently, according to a survey by RCLCO, the leading knowledge-solutions provider to the real estate industry. As such, second homes have the biggest upside for sustained price and home-value growth.
Buying early into a project is exactly the strength that a community like Seabrook on the Washington coast currently provides. Now in its eleventh year, Seabrook is a third of the way to completion, having successfully come through one of the biggest recessions in recent history. Development of the town’s Main Street – its long-anticipated shopping and dining district – will officially bear fruit this summer, after some 15 shops and restaurants already have thrived in Seabrook’s retail center for several years.
- Second homes can become legacy and retirement homes
Owning a share in a company has little additional value other than the direct return on investment. When owning a second home, you not only invest in a fixed, reliable asset, but you also create a place that becomes a legacy home for multiple generations. Vacation homes become the places where kids look forward to going every school break and summer. They become part of families’ traditions and lifelong memories.
For those ready for retirement, second homes can turn into partial or full-time residences. “People of all ages yearn for a peaceful, calm, walkable place by the beach where they can stay, live or retire” says Casey Roloff, founder of Seabrook. That word – walkability – is the key to the success of vacation-rental destinations.
- Guests prefer a walkable beach-town environment
There is high demand for beautifully designed homes within a short walk of shops, restaurants, parks and the beach. Beach towns that have quaint retail districts within close walking distance, like Cannon Beach, Carmel and Monterey, have maintained higher property values due to their popularity with vacationers.
Walkability is often used to gauge a community or neighborhood’s quality of life, and Roloff says it’s the key to creating welcoming places and special bonds among the people in those places. “Places where all of your daily needs are within a five-minute walk and homes are designed with people, not cars, in mind are the best places to live and vacation.”
- Interest rates are still at historic lows, bringing along tax advantages
In December of last year, the Fed hiked its 0 percent interest rate by a quarter point, with up to four more rate increases expected this year. Financing a second-home investment is still very favorable for buyers today, but that is likely to change in the near future. In addition to great financing, owners of second homes enjoy many tax benefits. If you are considering purchasing a vacation home, make sure to discuss these advantages with your accountant.
The first two weeks of 2016 were one of the worst periods ever for US stock indexes. Indexes are now in correction territory for the second time in six months. A fixed, tangible, long-term investment like a second home can diversify and solidify any portfolio. Finding the right combination of an income-earning rental home and a unique vacation destination is the key to a successful second-home investment.
Download an online booklet on Seabrook and learn more about how a beach town on the Washington coast has defied all odds. Find out more about Seabrook’s oceanfront and town-side homes currently available at www.seabrookwa.com.