Today, a select number of savvy investors are making an absolute financial killing by buying and renting out some of the best vacation homes on the planet. Thanks to platforms such as Airbnb, you too can easily join the game and start making a decent to luxurious living by renting out your vacation home. However, you will first need to find the right vacation homes to buy.
So, what are the best places to buy a vacation home and should you be getting in the game?
The Best Places to Buy a Vacation Home
Trying to narrow down and find the best place to buy a vacation home is all about brainstorming. Think about it, where would you like to spend your vacation? Say you had the time and the resources, where would you want to go and what kind of property would you like to rent?
Once you have that list down (include even the places that you can’t afford to rent at this very moment), you can start checking to see what kind of deals you can get and whether or not you could turn those locations into a profitable vacation rental business for you.
Here are some of the best places to consider buying a vacation house:
1. Palm Springs, California
If you are going to find only one vacation home to buy in your entire career as an Airbnb owner, then you want it to be in a place like California where the sun shines for most of the year and the weather is near perfect. This is one of the ideal vacation destinations across the country and Palm Springs is one of the best spots in the entire state.
There are very many reasons why you would want to buy a vacation home in California: year-round tourism and visitor traffic, entertaining events that draw even more people from across the globe, famous architecture and so much more.
The median price for a good vacation home in Palm Springs is about $415,000 currently. On average, a 3-bedroom house can bring in an average of $2,500 – $3,000 when listed on Airbnb. That income goes up considerably if your vacation home has things like a swimming pool or is a beachfront property.
2. Cape Cod, Massachusetts
Another excellent option is to find a vacation rental home to buy in a favorite summer getaway such as Cape Cod, Massachusetts. This is by far, one of New England’s most cherished vacation destinations and having a home here almost guarantees you excellent returns during the summer months. This is mostly because the population here almost triples every single year as holidaymakers flock to the beaches as well as historic homes.
Currently, the median listing price for a vacation home in Cape Cod stands at just under $430,000. While as is the case with most places, the costs vary widely based on the size of property you buy, location, and its proximity to the beach. That, however, doesn’t change the fact that you will make an excellently tidy sum in rental income.
Reports show that the average rental income you can expect for a 3-bedroomed house on the Cape is about $1,875. The same report shows that you can expect to make about $1,000 for a studio and about $705 for a single room in a month all year round. Not terrible returns if you consider the fact that Cape Cod on average sees most of its tourists during the summer months when that rental income can triple as supply and demand market forces come into play.
3. Napa, California
Napa sells itself. From award-winning vineyards to the rolling hills, who wouldn’t want to vacation here at least once in their life? That is probably why “Wine Country” sees about 3.5 million visitors every year with more and more of these visitors booking stays with Airbnbs in the region. These homes are considered authentic and offer the visitors a taste of the fine local Napa experience.
Currently, the median listing price for buying a home in Napa stands at around $655,000. The average rental income stands at around $2,134 for an apartment and much higher for an actual home.
While that figure might seem modest for such as highly valued destination, the truth is that most homes make a lot more from their Airbnb listings and you can too. The trick is to find a way to bundle their stays with the myriad of Napa Valley tour offers in the area.
4. Panama City Beach, Florida
Now, if you find a location that is not only naturally configured to be a vacation destination (somewhere by the ocean with excellent weather) but also strangely enough poised for wonderful ROI on your investment because the real estate costs are manageable, then you will have found the perfect place to buy a vacation home. Panama City Beach in Florida is one such place.
Not only does it continue to see a steady flow of tourists demanding for private accommodation, but the real estate prices remain steady and well within reach for the average Joe.
Currently, the median listing price for homes in Panama City Beach stands at just under $285,000. The average rental income to expect here is around $1,000 per month but definitely goes higher as vacationers flock the region.
5. Kissimmee, Florida
Kissimmee has a host of wonderful attractions that bring a multitude of people to this location throughout the year. For a place that has LEGOLAND, Disney World and Universal Studios all in the same region, the prices of the homes aren’t as exorbitant as you would expect.
Currently, the median listing price for a home in Kissimmee, Florida stands as around $220,000. The average rental income you can expect in this location is around $1,366, but it tends to fluctuate (higher) throughout the year.
When looking for a vacation home to buy, find a location that offers your potential visitors much to do and see. Many of these places aren’t always as expensive as you would expect and can bring in quite a bit of rental income throughout the year.