Ardismg

Tourists are not always economy class spenders. Some tourist go first class and can easily afford 5-star hotel rates. This is common in a city like Toronto, Canada. However, because of the low temperatures of Canada, it can be safely said that tourists will only be abundant during the summer the months which is roughly ¼ of the year or roughly 100 days in a year. Thus, tourism revenue should be calculated with this in mind. Let us assume that a US$600,000 in-city luxury home has been converted by investors to be rentable.

Assuming a 10 year return of investment requirement, this results in a US$60,000 a year required revenue. Assuming only 100 days a year is high roller tourism season, this requires a rent of at least US$600 a day. However, for US$600,000 luxury house, which probably has at least 5 rooms, a visiting foreign delegation or a simple successful businessman and his family can easily afford US$1,200 a day or more. If the party is comprised of 5 individuals this results in just US$240 per person per day, dirt cheap for such accommodations. Thus, viability is possible. Here, a Toronto Real Estate Agent can be approached by interested investors for good investment opportunities. A Real Estate Agent can even approach large corporations to invest in such holding for their visiting dignitaries.