Snowbird Article: Everyone loves a vacation--mountains or beach, on ground or in private jets!
I have lived in a tourist community my entire life, and have seen snowbirds visit during the winters trying to escape the winter snow, while families trade off for the summers to spend their days on the beach in bikinis. No matter when you like to visit, ownership can be a decent asset for those who want to rent our for part of the year and enjoy for another part--especially those who want to rent out their space during the warmer busier months when prices are much higher, and therefore, income much greater. When we can add to our portfolio with assets that are making a decent net income annually, that are also saving us an expense on holiday/vacation stays at our "home away from home," and providing us a tax-deferred investment that we can pass on for generations to come, it seems like a win-win. There are always risks, and unforeseen expenses such as COA dues, community assessments, higher taxes and insurance, major disasters, and higher short-term rental repair costs, but everything that is worth doing takes on some risk. The largest risk is continuing to live "safely" by giving others your money on rentals and vacationing while they're making your money make money for them, rather than your money making income for you. Wealth comes from our money making money for us without us having to be present, work our hands to the bone, and "live" for a retirement that may never even pay enough for us when we get there. Live smarter, not harder, and invest in real estate. Keep trading up with 1031 exchanges, and taking advantage of the tax benefits that come with that for you and your family. Live more frugally today for tomorrows reward.