What about a dream holiday home?
The same strategy could also be used to fund a holiday home. In the past, having a beachside or mountain holiday home was considered an expensive luxury exclusive to the rich. But now you can have a holiday home and make it a cash flow producing asset.
I remember always wanting a dream house in the snow. The first time I visited Queenstown, New Zealand back in 1999, I fell in love with the place. On my way back to the airport I saw a beautiful holiday home for sale.
After a quick inspection I decided to make an offer and within weeks I had acquired it.
I decided to holiday rent it for the months I wasn’t able to visit and that home paid for itself.
These days though, thanks to Airbnb etc. it’s even easier to generate an income from such holiday homes, which enables one to effectively get a holiday home for free if the rentals pay off the mortgage.
It’s quite common to average 10-14% p.a. net rental returns from Airbnb. Sometimes rental returns could even be higher, plus you’re still able to use the property often for your own personal use.
This strategy is more viable compared to a full-time tenant paying 4-5% rental yield, since it allows you to use the property as a holiday home whenever you want.
Thanks to technology and some creativity, your dreams can now become a reality perhaps much sooner than you thought.