The 160% Return Asset Class You’ve Never Heard Of

As the world begins opening up, and people are starting to travel again, many of them are catching up on what they missed doing during the pandemic.

Many people have begun traveling again which has led to an increase in the demand for things that facilitate travel.

The one thing that is particularly on the rise is the appeal of vacation rentals.

According to this report from 2021, over 70% of Americans still prefer staying in hotels rather than vacation rentals.

But the demand for these vacation rentals is steadily growing.

As the market is still relatively new compared to the hotel industry, the revenue is expected to reach $17B this year. 1 in 8 people currently use vacation rentals and this number is expected to reach 1 in 5 people by 2025.

If we are to pair it side by side with the hotel industry revenue which hit $110B in 2021, you notice that there is a lot of growth potential for the vacation rentals.

According to this AirDNA report, people are now staying longer than 7 nights in vacation rentals which also signals how comfortable they are staying in vacation rentals.

Leaving the potential of this market aside, for the most part, there has been no direct way to capitalize on the growth of this market without a lot of effort and money.

All the investment advice out there has mostly advised investing in it in the same way you’d invest in traditional long-term rentals.

But vacation rentals generate up to 160% more revenue on average than traditional long-term rentals.

With no clear way to capitalize on such revenues, their growth has gone unnoticed by most people since it required huge sums of money and effort to invest in them as vacation rental owners.

What one company did was to get the SEC to securitize vacation rental properties and break them into shares.

This company then sells shares to investors which allows them to invest in vacation rentals the same way you’d invest in stocks.

The upside to this is that you get to benefit from the high appreciation of the high cash-flowing vacation markets while maintaining the same passive approach you would on stocks you buy and hold.

You do not have to spend a lot of money to become a part of it nor do you need to waste time managing the properties since the company has full-service property management.

Personally, I think that this is an amazing concept. I even saw that they have a 9.6% APY dividend which is wild if it were true.

There is no doubt that this new idea contains risks.

Investments in this area are subject to risks such as general economic conditions, illiquidity, complete loss of invested capital, being subject to interpretation by the courts, and risks beyond the issuer's control.

It is one of those investments that get me excited about being a part of though and I think I will be reporting back on my experience with the investment when I have some results in the future.

If you are interested, use this link. It is not my affiliate link but rather that of the person I got to know about this from.

The link above belongs to an influencer called Shelby Church and since I have been following her for quite some time, I think that this is an amazing investment to try.

All investment strategies and investments involve the risk of loss. Nothing contained in this article should be construed as investment advice.