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A Guide to Investing in Weekend Homes

28 Aug 2019
A Guide to Investing in Weekend Homes

A Guide to Investing in Weekend Homes

Wondering what weekend homes are? It is those homes and resorts that people rent out on weekends- the same thing we usually know as rest houses. Most of the weekend homes in Pakistan are found in the northern side of the country, away from the city life and into the mountains because those are the vacation spots here in our country. People who deal in properties understand how fruitful investment in these weekend homes can prove to be. The ROI (Return on Investment) on these weekend homes is great because they are purchased to be rented out and become a source of earning for the rest of their life. Investors in Pakistan report the ROI between 15 to 20% each year on these weekend homes and this is going to increase even further in the coming years because the demand of weekend homes is likely to go up by 12 to 15% within the next three to five years.

Buying these weekend homes might be a more crucial decision than buying a regular property for your own living because when we know that we are not going to live ourselves into it, a lot of details tend to go overlooked while purchasing. However, to ensure constant earning through these weekend homes and providing a pleasurable experience to your clients, you must make sure that you make the right decision and invest in the right kind of property to rent it out in the future.

If you also plan to invest in one of these weekend homes, the following are a few points you must keep in mind:

Location :

The location of weekend homes is very important. It is the first thing people check when they want to rent out one. The area has to be somewhat commercial preferably so that the items of basic necessities can be found here. People may not want to live in a haunted, isolated place. However, over-commercialization and too much city like hustle may also not be appreciated. So the location has to be very smartly and strategically chosen. 

Nearby Commercial Area :

There must be a full-fledged commercial area near your weekend home where the visitors can go and shop. Shopping is one thing that everybody looks forward to when they are out on a holiday so make sure to provide them an opportunity close by.

Ensure Safety :

This is one thing that needs not to be mentioned because it is that basic and essential. Providing safety in remote places can be a challenge but nobody is going to rent out your weekend home if it doesn’t promise safety. Hire security guards, get CCTV cameras installed, and take all necessary measures to ensure the safety of the people visiting.

Check Infrastructure :

The infrastructure of these weekend homes must always be thoroughly checked before taking a buying decision. Check if it can sustain drastic weather conditions like heavy rainfall and has no problems with water, gas and electricity supply. The pipelines, wiring, architecture everything must be thoroughly inspected while buying these weekend homes.

Check the Essentials :

In addition to infrastructure, the other essentials must also be carefully checked. For instance, make sure the weekend home you are considering for investment has the bedrooms, living room, and a small kitchen to facilitate whoever rents it out later. The taps and all plumbing works properly, there are charging slots for chargers, laptops and other electronic appliances have the wiring for generator or UPS to ensure uninterrupted power supply and other such minute details that are mostly overlooked when one is making an investment decision.

 Consider maintenance costs :

Buying this house is not the only cost that you need to consider. The maintenance costs must also be kept in mind while investing in these weekend homes. You would need staff comprising of at least 3 to 5 people to take care of the property in routine and to serve the clients who rent it out on seasonal days. There has to be a caretaker to ensure cleanliness and maintenance, security guards, and a manager to manage the front desk and deal with the potential clients. As the size of the property you are investing in goes on increasing, the staff required for it and the maintenance costs that will be incurred will also go on increasing accordingly.

Provide in-demand facilities :

Another additional cost that you must consider is that of providing in-demand facilities to your potential clients, like internet, TV, cable, telephone connection or network coverage, etc. These are one of the top demanded facilities when people look for weekend homes on their vacation. You can also go on adding the extra perks to increase the value and demand of it, like managing a small sports area. We have seen weekend homes that have separate living rooms with a huge flat-screen TV and modern furniture. Then there can be sports facilities like in-door table tennis or providing a basketball or badminton court. There can also be a gym, a reading room, and all such additional luxuries that can make you demand more than other weekend homes in your nearby locations.

So if you have idle money that needs a good investment opportunity, a weekend home might be a great option to create a future stream of earning for you as well. Keep the aforementioned points in your mind and begin your search today. Other than that, you can also look for plots for sale and houses for sale in these remote locations to convert a regular property into a weekend home as well.

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