Fred Mullins, Donna Mullins, & Erin Biby
Coldwell Banker Schmitt Real Estate Company
1201 White Street Ste. 101 Key West, FL 33040
How Increased Tourism can Affect Your Vacation Home’s Value
With more tourists come more dollars, and, certain factors come into play. Vacation homes in such prime locations enjoy many benefits and distinct advantages over homes that are further away from the action. Here’s how increased tourism can affect your vacation home’s value:
●More business means more need for housing. As businesses expand, so does the need for employees, who, in-turn, need housing. That spurs new residential developments which go to fund local taxes, offsetting rising land values.
●Increased tourism injects money in the local economy. With more money coming into the local economy, destination spots look to capitalize where possible by expanding. Such expansion means more is offered to visitors, who take advantage.
●As a destination becomes more frequented, property values increase. Property values in localities where tourism is an ever larger source of revenue rise steadily. This means that equity can be built at a faster rate, giving you more leverage for other endeavors.
●The land value of your property will simultaneously rise. Even if your vacation rental isn’t among the top tier, your ace in the hole lies in the land on which the residence sits. As developers watch the dollars roll-in, they have more incentive to offer lucrative purchase deals.
●New commercial developments have a positive impact. If you take time to look at some of the most frequented destination locations, you’ll see an inextricable link between commercial development and home values. The more commercial enterprise, the better for nearby property values.
To sum it all up, wherever the tourists are and spending money in the local economy, the higher property values rise. Overall, tourism has not only a positive impact on the local economy, it’s also a very good thing for home values.
Fred Mullins, P.A. holds an MBA, B.S., real estate license United States Coast Guard Master Captain's license and commercial pilot's license. With over 20 years of cross functional experience in real estate, international asset management and construction management, Fred's experience places him as one of the top real estate professionals in the Florida Keys.