When it comes to investing in real estate, nothing looks more promising than a vacation rental. Studies have proved time and again that vacation rentals retain value in the long run, even if the economy is shaky overall and properties in the mainstream markets suffer from a slowdown.
While you can buy a vacation rental at any of the numerous tourist attractions in the U.S., one particular market that has attracted a lot of real estate investors including retirees recently is Indio, California. Because of the numerous festivals and special events held annually in Indio, the Chamber of Commerce deemed Indio’s official nickname to be “The City of Festivals.”
Tourists from all over the world throng Indio to participate in popular festivals like Coachella Valley Music and Arts Festival and StageCoach Music Festival. With tourist inflow constantly on the rise, Indio offers a great opportunity to people looking to invest in vacation rentals. Here are 5 reasons why you should buy a vacation rental in Indio California:
Build equity faster with prospects of high return on investment
Indio, located in the Coachella Valley of Southern California, was among the regions that witnessed the highest home price growth last year. Median prices rose 9.5 percent year over year, and per square foot prices rose 7.6 percent, according to a study.
It means there are good prospects of a high return on your investment. By investing in a vacation rental in Indio, you will be able to build equity faster.
Able to withstand poor economy and slowdown in housing markets
Vacation properties are more likely to retain their value and appreciate simply because they are located in popular areas with a geographically limited supply. Whatever condition the economy is in, the city will attract tourists. It will safeguard your investment against a sudden slowdown in the housing market.
If you don’t want to turn your property into a full time rental, it is perfectly fine because tourists in Indio mostly rent properties on a weekly basis. It means that you can have the place for yourself and your family whenever you plan a vacation.
With short-term rental services like Airbnb gaining popularity, you don’t need to worry much about vacancies.
You don’t have to commit to a fixed rental agreement for a year or so. You can charge according to the season and demand. For most vacation rentals, weekly rental fees during peak season are usually equal to or even greater than the property’s monthly mortgage payment. So you can make enough in a week to pay your monthly mortgage installment.
Close to other tourist attraction
Indio’s proximity to other popular tourist cities like Palm Springs and La Quinta ensure a study influx of tourists throughout the year. It means that you will never go out of business. Indio lies just 23 miles east of Palm Springs.
Owning a vocational rental in Indio, California can be a brilliant personal financial move if you do your due diligence and are ready to put in some patient time finding the right property.