Since the introduction of websites such as AirBnB, the landscape of holiday homes has been altered substantially. In addition to the fact that a spare bedroom has become a cash cow, individuals are discovering that second and third homes may provide the best of both worlds. A second house might provide a homeowner with the option to visit a different place on vacation and become an experienced real estate investor at the same time.
Although the flexibility of owning numerous residences enables owners to engage in regional arbitrage and unlock a range of tax advantages, the majority of individuals are terrified by the prospect of having another mortgage (that, and the thought of effectively being a landlord). However, the fact is that homeownership is a very rewarding and uncomplicated endeavor.
Below, we will take a look at the reasons behind why most people choose to buy a vacation home with cryptocurrency, as well as provide tips for buying a vacation home to ensure a great experience.
Why buy a vacation home?
When it comes to vacation homes, there are really only two reasons that people choose to buy them.
For pleasure and leisure
The most common reason for buying a vacation home is to use it for vacations, which is quite obvious. Thus, pleasure and leisure are the number one reasons behind making the purchase. This entails that you simply plan to use the vacation home yourself, or maybe lend it out to friends and family when you are not using it yourself.
As a rental property
The second most common reason for buying a vacation home is to use it as a rental property. You can still choose to use the property yourself during certain periods of the year, and simply rent it out during periods of time when you are not using it.
This can be a great way to make your money back and potentially start up a business of owning multiple rental properties. While some people may be deterred by the fact that they don’t want the responsibility of being a landlord, that’s not always a requirement. There are services out there that take a cut of the profits in exchange for managing the property and handling things such as repairs, and cleaning between tenants.
Tips for buying a vacation home with crypto
Before setting out on the adventure that is buying a vacation home, there are some things to keep in mind, In order to keep this experience as positive as possible for you, we have gathered several useful tips for you to keep in mind when you are buying a vacation home with crypto.
Buy only what you can afford
While buying only what you can afford may sound like an obvious thing, that’s not always the case. It’s quite easy to get carried away by aspirations and plans and forget to stay rooted in reality. It’s possible that your newly purchased vacation home could use some costly repairs or upgrades, for example.
Thus, if you spend all your funds on the purchase itself, you may be left with a vacation property that you cannot use. Effectively making it a waste of money until you sink more money into it to make the required updates. Property taxes are another thing that can sneak up on you depending on your situation. So the tip is, to make sure that you can afford your desired vacation home before going through with the purchase.
Factor in extra costs
This tip is a continuation of the previous point and is something that is well worth remembering. Extra costs can show up in abundance and set back even the most well-thought-out vacation home purchase.
There could be extra costs associated with utilities, upgrades, repairs, or various other fees that are unaccounted for. Thus, it is always a great idea to set aside funds for extra costs just in case.
This is especially true if you plan to renovate the property, as expensive issues may be found, such as dated electrical, plumbing, or issues with the foundation. All of these can be quite costly to fix, and are therefore well worth accounting for.
Don't buy a timeshare
Each timeshare owner is permitted to utilize the property for a specified period of time each year. Typically, these houses have many bedrooms and may accommodate multiple occupants simultaneously. Owners of timeshares who are unable to visit their property during their allotted time period may often rent or give away their timeshare days.
One of the most significant disadvantages of having a timeshare is that many of them restrict your vacation planning options. Every timeshare owner is permitted to utilize the property for a specified amount of time each year. Depending on the kind of timeshare, this may include occupying the property for a specified week or season. In many instances, the dates change annually so that all owners may enjoy the property throughout a variety of seasons. If your share falls at an inconvenient moment, you will be forced to either rent it to someone else or write it off as a sunk cost.
Unfortunately, timeshare properties are often subject to unforeseen costs. Timeshare owners should expect to pay for ordinary maintenance, taxes, and utilities, but other costs, such as special assessment fees, may come as a surprise.
On top of all of this, in contrast to normal real estate investment assets, you will almost certainly incur a loss when selling your timeshare. This is due to the fact that there are not enough purchasers to acquire all the timeshare properties for sale, making them generally an awful investment.
Work with reliable real estate agents
Working with a reliable real estate agent that knows the area well is especially important if purchasing a vacation home abroad. These may have specific rules, and there might be specific things to look out for regionally or locally that you may otherwise miss.
However, even when looking for a vacation home locally, it is a great idea to work with reliable and knowledgeable real estate agents to ensure things run as smoothly as possible. See our list of real estate agencies to use with crypto.
Find the right location
Finding the right location is especially important if you are buying a vacation home to use as a rental property. If you’re going to be the only one using the vacation home, then objectively there will be no right or wrong location. However, when renting to the public, the right location can be the difference between a decent investment and a great investment.
Houses that have convenient locations, or proximity to popular attractions or nature, such as lakes, rivers, and oceans, tend to do way better. A vacation home with a great view is also more likely to be booked than other vacation homes in the area.
Make your purchase with XEROF
When purchasing a vacation home with crypto, one of the best tips is to use XEROF to make your purchase. XEROF is a crypto gateway that is compliant, safe, and easy to use, enabling you to purchase vacation homes and luxury goods with crypto in a simple and secure way.
You can use BTC/ETH/USDC and USDT to make purchases in CHF/USD/EUR/GBP and AED. Effectively, making it incredibly easy to spend your cryptocurrencies on purchases even with resellers that don’t officially accept cryptocurrencies as a payment method.
In conclusion, vacation homes can be a great way to make extra money when used as a rental property, or simply keeping it for personal use to relax and unwind. By not rushing into things and using common sense and the tips provided above, you are well on your way to becoming the happy owner of a vacation home.
XEROF is a Swiss-licensed Crypto Gateway that offers exchange services for customers who possess crypto wallets and want to use them as fiat currency to purchase real estate properties and luxury goods.Learn more about XEROF