Know Your Why Before You Buy: Top 8 Best Places to Buy a Vacation Home
Buying rental properties can be an excellent way to see a return on your real estate investments.
According to forecasts, the US vacation industry could be worth 2.6 trillion dollars by 2027.
If you want your piece of the profits, buying vacation rental properties could get your foot in the door.
As the saying goes, ”location is everything”. Here’s a snapshot of the best places to buy a vacation home if you want to win at the rental property game.
Choosing the Best Places to Buy a Vacation Home
Apart from location, there are a few things you should take into account when considering your options for buying a vacation home.
The major ones are:
- Accessibility for your family and friends
- Annual occupancy rates for rentals
- Costs involved in managing the property
- The average rental that you can charge per day
- The tax implications of owning a second home
Before you consider buying a place, spend a few nights there to get a feel for it.
Scope out any nearby activities that future clients might enjoy. Talk to other owners in the area about their experiences in the vacation rental arena.
If you think you’re up to the challenges, these are the places you should consider shopping for a vacation property.
1. South Florida
You can’t go wrong with a seaside destination for your vacation property. No matter where it is in the world.
As an example, the Australian Gold Coast is hot property right now, with 45,000 new investors in the area. View here for more about the appeal of coastal villas.
Closer to home, Florida is a top destination for family seaside vacations. It’s also a lucrative investment if you want to rent out your space when you’re not using it.
Last year, the Sunshine State welcomed 126.1 million visitors to its shores, most of these from within the United States.
It makes sense that buying a beach house or condo in Florida could mean a handsome return on your investment. Not to mention many unforgettable vacations of your own.
Some of the most desirable areas for rentals in Florida include Miami Beach, Key Biscayne, and Fischer Island.
2. Napa, California
California wine country is hot property among vacationers.
People love to spend time enjoying rural hospitality and enjoying scenic countryside explorations. Naturally, sipping on fine wines is another undeniable attraction in Napa.
While the initial purchase price of your home may be high, you can command a rental rate to match in this neck of the woods.
The average nightly rental in the Napa Valley can be as high as $573 per night during peak periods.
If you can live with having a country retreat for your vacations, Napa could be a good option for you.
3. Gatlinburg, Tennessee
As a gateway to the Smoky Mountains, Gatlinburg is a firm favorite among families and adventure seekers.
Historically, property prices have always been surprisingly affordable in this area and occupancy rates are high, year round.
Every year, guests book approximately 54% of the available room nights in Gatlinburg.
Gatlinburg is a good investment if you want a year-round destination for your family to enjoy, as well as a steady income when you’re not in residence.
4. Myrtle Beach South Carolina
Another seaside gold mine for investors, Myrtle Beach is an attractive option for investors due to its low real estate prices.
Miles of beaches and a host of family-friendly attractions make Myrtle Beach a favorite for vacationing families.
While it may not be hopping year-round, the peak times in Myrtle Beach are predictable and reliable.
This can be an advantage if you want to use your home yourself in the quiet months or rent it out to acquaintances during these times.
5. Cape Cod, Massachusetts
Every year during the summer break, the population of Cape Cod triples with an influx of vacationers.
The beaches, fresh seafood, sports activities, museums, and galleries are all big drawcards in this classic seaside holiday destination.
It may be a short peak season, but it’s a lucrative one. With accommodation at a premium during these months, some homeowners make up to $50,000 a year from their Cape Cod vacation properties.
In the winter time, the town returns to its sleep self and you’ll have to adjust your rates and your expectations accordingly.
6. Savannah, Georgia
Savannah abounds with a southern charm that attracts visitors year round. As a historic destination, this touristy town overflows with attractions.
Gorgeous architecture, opportunities for fireside ghost stories and interesting museums are everywhere.
It also has a fair share of trendy boutiques, swish restaurants serving the freshest seafood, and the chance to sip cocktails at leisure come sunset.
Tybee Island with its gorgeous beaches, gentle seas and festivities is only a short drive away.
All these factors combine to make Savannah a top choice for vacationers as well as astute vacation property owners.
You can look forward to an average rental of $200 per day and 59% occupancy if you buy a 3-bedroom vacation home in Savannah.
7. Killington, Vermont
This small mountain town could very well be the next big thing in vacation destinations.
The rapid growth of Airbnb offerings in this town shows increased interest in the area as a top ski destination for vacationers.
In the summertime, walking, hiking, and biking in the surrounding forests are popular activities.
The town overflows with year-round activities and amusements, from thrilling Skye car rides to scenic and leisurely gondola trips up the mountain.
With property prices hovering at the low end of the range, it may be worth taking a gamble on the impending boom in this attractive area.
8. Corpus Cristi, Texas
The long warm season extending from the first days of spring until late in the fall makes Corpus Cristi a popular place for a seaside break.
This is the one place where waterfront properties remain within the reach of first-time homeowners, at an average of $220,000.
Rental occupancies are booming here and property owners can expect to earn up to $75,000 annually from a 3 bedroom vacation home or condo.
Make Good Property Choices
Real estate is always one of the most expensive things you can buy.
It makes sense that you need expert advice when you’re considering buying a vacation home.
Browse through our portfolio of properties located in some of the best places to buy a vacation home or reach out for expert advice from our team of professionals.