Investing in real estate has become a modern trend. That being said, investing in a resort has become a viable way to make a considerable amount of capital. What is important to understand this investment is that you have to research carefully your strategy so that you can ensure that you are going to have a successful investment in the long term. Consider these viable tips for buying a resort investment property:
Consider Investing Abroad in a Tourism Capital
Many investors have made a considerable profit by investing in overseas properties in areas that are less expensive to invest, but attract a great deal of tourism. Some prime examples of this can be seen in Mexico and Thailand where the real estate is economical, yet arguably has better beaches than Hawaii. These markets are ready to be invested by sophisticated investors who want to create spectacular boutique hotels and resorts.
Go Where the Labor is Affordable
By leaving the United States, for example, you will find a skilled labor force that is very customer service oriented in countries such as Mexico and Thailand as well. The overhead costs of your investment will be substantially lower and you will be contributing to the local economy who can bring a positive cultural experience for your guests if you choose the right employees. By providing jobs to local employees, you will also be able to have a positive relationship with the local authorities who are going to be the individuals you need to get approval and licenses from.
Start with Boutique Size
When starting as a resort investor, it is important to understand that regardless of the level of quality of your rooms, service is the main factor that will influence the success of your business and real estate investment overall. By starting at the boutique level, you will be able to build a customer experience in your beautiful smaller resort. This success will build you a reputation and provide you profits to possibly start another resort in the long term.
Investing in a resort is a spectacular way to make a living while not working the traditional desk job. Additionally, it allows you to reside and/or live in a beautiful place as you make money. Thus, consider these tips when you make your choice and you will be elated at the positive response that your resort will receive from both guests and the local community.
Elie Hirschfeld is a real estate developer in the Manhattan metro area.