Investing in holiday properties is gaining traction among many investors. As demand for short-term rentals continues to rise, selecting and managing these types of properties effectively can yield substantial returns.
In this article, we will outline 4 strategies to assist you in making smart investments in holiday properties.
Assess the Property Market
With the rising prominence of short-term rental platforms like Airbnb and Booking.com, the influx of tourists is on the upswing. This scenario opens up distinct avenues for investors, enabling them to secure a reliable rental income.
By investing in holiday properties, you can mitigate the risks tied to fluctuations in the conventional housing market. Incorporating this sector into your investment portfolio allows for an additional revenue stream that is generally less volatile than other financial markets.
Housing evaluation criteria
Dimensions of the property and its practical design are crucial in drawing in renters. Ample flats or residences outfitted with all essential amenities are likely to be highly sought after and can command elevated rental prices.
The property’s placement is one of the critical elements to consider. Dwellings situated in popular tourist destinations like Davos, with convenient access to transportation networks and key attractions, substantially boost the likelihood of successful rentals and appreciation in value.
Properties that are near ski slopes, official ski lifts, and the town center are expected to attract considerable interest.
Good transport infrastructure is also important. The ability to quickly get to the resort and its surroundings – whether by public transport, ski buses or by road – makes housing more attractive to tourists. The presence of garages or car parks is also a plus.
Shops, restaurants, sports facilities and medical care within walking distance make your vacation more comfortable. The more amenities and services in the immediate vicinity of the property, the more popular it will be among tourists.
Davos is famous not only for skiing, but also for cultural, sports and entertainment events. The presence of beaches, forests, spas and creative exhibitions attracts a diverse audience. It is important to consider how close the property is to these attractions, as this will affect the level of interest from tenants.
Evaluating real estate price growth and seasonal fluctuations in Davos
Real estate in Davos increases in price sharply during the winter, when the resort is filled with tourists. Summer months can also be favorable for investment, especially for outdoor activities such as trekking and cycling.
However, assessing price growth should take into account not only the seasons, but also long-term trends such as infrastructure development, political factors, and the general economic situation.
Why use a real estate agent
Contacting a real estate agent in Davos can significantly simplify the process of purchasing a property. Professional agents have in-depth knowledge of the local market, will help you find suitable options and negotiate with sellers. They can also provide up-to-date information on prices, market trends, and help you avoid potential risks.