2. An Investment That Pays You Back
If a good investment is one that pays for itself, then a great investment is one that pays you back.
Say you’re a family of four and you own a vacation home that you stay in 1 week out of the year. What do you do the other 51 weeks? The answer is make money. In recent years, platforms like AirBnb and VRBO have become increasingly popular, giving home owners an avenue to gain a supplementary income from their own investments. A recent article in Travel Daily News revealed that AirBnb hosts in Aruba made around $9,200 on average in 2018. The article also claims that this was a 77% growth from the previous year, emphasizing the large growth of the home-sharing industry in Aruba. Currently, a 3-bedroom, 2-bathroom house in a quiet in-land suburb like San Barbola would cost about $280,000 to buy and goes for an average of $200 a night on AirBnb. With current statistics from Air DNA showing an average of 52% occupancy, a house like this could potentially make up to $38,000 in a single year. At that rate, your real estate investment in Aruba would pay itself back in a little over 7 years, anything after that becomes profit.