The state of Maine is renowned for its crystalline beaches, majestic mountains, beautiful countryside, diverse culture, and mouthwatering lobsters, providing a perfect summer vacation setting that is unlike anywhere else.
What makes Maine a spectacular vacation getaway is its breathtaking natural beauty; people come from across the country and beyond to experience the thrills of Maine’s glacial rapids, the stunning sunrise atop the Acadia National Park, explore the rocky beaches and resorts and discover some of the world-class cities like Portland, Bangor, Augusta, and Auburn.
Maine is home to some of the best skiing experiences in the east, world-renowned national parks, excellent sailing waters, exhilarating whale watching trips, world-class art museums, historic landmarks, Michelin-star restaurants, exclusive antique stores, nationally-recognized golf courses, and many more recreational and entertainment activities than you can count.
Why Is Maine a Great Place for Investing in Vacation Properties?
There has been an increased demand among homeowners seeking excellent vacation properties in Maine to add to their portfolios of rental homes. It is easy to see the appeal of a vacation property.
You can enjoy the property whenever you like. In addition, it can be a great source of passive income by serving as a guest house or vacation rental where you can invite people to stay during their vacation.
The private vacation rental market in Maine is booming and is not likely to stop anytime soon, making buying a Maine summer beach house a great investment.
Excellent Returns on Investment
Since Maine is a popular place where retirees move, it also has a booming retail and healthcare industry. The state is home to world-class medical facilities like the Maine Medical Center, Mercy Hospital, St Joseph Hospital, and more. As such, it is an ideal rental market for people of retirement age.
In addition, major cities like Portland have seen an increase in rental prices for single-family homes.
A smart Maine vacation property investment will pay for itself and generate a great profit for you as well. To make the most of your investment, you should consider a few factors:
- How many people travel to the place where your beach house is located?
- What are the peak vacation times in your area?
- How can your beach house meet the demands of a visitor?
- Is your beach house used exclusively for rental purposes, or do you plan to live there for some time as well?
- What features and amenities of your vacation home can attract more guests?
All of these things can help you get an accurate estimate of how much your Maine summer beach house can earn.
Maine is home to several tourist hubs and cities that see a huge amount of tourists every year. If your property is in a smart location, the increased demand during the peak summer time can increase its value.
In addition to passive home appreciation, you can also appreciate your home value by investing in upgrades that can result in happier rental guests and 5-star guest reviews.
Retirement Living Destination
With gorgeous natural sceneries, endless leisure and recreational opportunities, a low crime rate, and a low cost of living, Maine is a popular retirement living destination. Vacation homes comprise a major part of Maine’s housing market and account for 20% of its single-family homes. The state is home to 1.34 million people, and the main reason for its population growth is thanks to retirees.
This means it offers ripe opportunities for single-family home investments. With a large number of retirees looking to rent a home in Maine, vacation home investors can take their pick of tenants and ensure a steady income throughout the year.
How you use your Maine summer beach house and for how long can impact how many tax benefits you can take advantage of. For example, if you rent your place for over 14 days a year, it can help you write off some taxes. If you use your rental property exclusively as a vacation rental, which is used all year long, then your tax benefits will be significant and lead to thousands of dollars of savings.
We recommend you consult a CPA to find out how much tax deductions you can benefit from a vacation rental.
A vacation rental home in Maine can generate excellent passive income even in times of recession. People do not stop taking vacations when the economy slows down though they may plan shorter vacations and opt to share expenses.
According to a Vacasa survey, 52% of travelers would opt for a vacation home rather than a hotel for staying during their vacation. As such, buying a Maine summer beach house can be a lucrative means of getting an income even during economically-tough times.
Investing in a Maine Summer Beach House
Maine is one of the most recession-proof and stable housing markets that have a strong potential for appreciation. Currently, single-family homes and vacation rentals are excellent choices for Maine housing investors.
Although some prices have come down from the previous year, this is mostly due to market correction rather than a market slump. Despite these small dips, most of Maine continues to see sharp spikes in the housing market, which are not expected to slow down in the near future.
In addition, Maine continues to attract retirees, vacationers, and renters every year. All of these factors make it an excellent place for real estate investors.
Take The First Step
Any Investment starts with capital, and that’s where a great local lender like Integrity Mortgage (NMLS #1692497) comes in. Our competitive lending terms and understanding of the local real estate market make us ideal partners for financing your Maine real estate investments. Contact us today to learn more or start the process of applying for financing.