If you are considering investing in resort properties?

If you are thinking of investing in tourist properties, there are a few aspects to take into account.
According to a guide from FortuneBuilders, buying a vacation rental property requires an in-depth knowledge of local markets and anticipated revenues. It is necessary to choose a location and conduct an in-depth analysis of the market before making an offer

It is important to note that owning a holiday property is not like investing in a traditional property. Unlike a traditional property, buying a holiday property means that you are adding a property to your portfolio that will have vacancies throughout the year. The income generated often depends on the first season.

If you're interested in investing in a property in a holiday community, there are pros and cons to consider. According to [realtor.com], buying a property in a tourist resort can be a great investment, but there may be additional restrictions and charges that make resorts less idyllic

ROI of a vacation rental property
A good return on investment in a holiday property will depend on the investment and the measure used. Many investors opt for cash return when measuring the profitability of rental properties. This figure takes into account the money spent upfront when investing and the income minus expenses. The cash-on-cash formula is then calculated as:

(Annual Cash Flow / Total Cash Invested) * 100 = Cash to Cash Yield
The final answer should be expressed as a percentage. Many investors are looking to achieve a return of more than 10% when looking to rent out holiday properties, but this figure can vary. In long-term rentals, for example, the common cash return is between 5% and 10%. However, short-term rentals typically indicate a higher rental yield.

If you are looking for specific investment opportunities, OUR HOME PORTUGAL offers an analysis of the different types of units and accommodations that you can find in many resorts in the Algarve - Cascais - Lisbon and Óbidos.