vacation buyers want income

Most vacation buyers want income – not family getaways

 

AUSTIN, Texas – Sept. 17, 2018 – The international market for second homes changed significantly over the past ten years. Buyers now prioritize rental income over purchasing exclusively for their own use, according to a new international survey – Spotlight: Second Homes – Global Trends in Ownership and Renting – from real estate adviser Savills and HomeAway.

In the 1970s, nine out of 10 owners kept their second homes to themselves. Even as recently as 2000, eight out of 10 owners never rented their properties to travelers. A period of rapid change now finds that more than two-thirds of owners rent their second homes for at least part of the year to cover some or all of their ownership costs.

For the first time, owners’ primary motivation for ownership is rental income potential, which has overtaken family getaways as the initial use for a second home.

“In a low-interest rate environment, investors are seeking out income-generating assets,” says Paul Tostevin, associate director, Savills world research. “Today’s second-home buyers want properties to work for them financially, and they are increasingly looking not just to cover costs but to turn a profit.”

The credit-fueled boom of the early 2000s and online expansion of the travel industry triggered rapid growth in the market for additional vacation homes across the U.S. and Europe. Low-cost airlines opened new destination choices overseas. British buyers became particularly active in second-home acquisition overseas.

 

 

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