Investing in real estate offers several benefits. There has been an increase in the need to buy vacation homes, and different questions are being asked for clarity on how to find the best vacation rental markets.
A vacation rental market is a real estate market where vacation homes are sold, bought, or rented. When considering a vacation rental home, it is vital to know its affordability for tenants and investors and its occupancy rate.
There are several reasons to consider buying a vacation rental home- it provides an opportunity to build wealth, diversify your income, make retirement plans, and serves as a vacation home. Below are why you should buy a vacation rental to direct tour search for the best places to buy a vacation home in the world.
Why You Should Buy a Vacation Rental
Take on Less Risk
In comparison to other real estate investment types, buying a vacation rental has lower risks. Vacation homes can attract many guests, charge Hugh rates nightly, and reach high occupancy rates, especially those in top tourist locations.
It is a Dual-Purpose Property
You should also buy a vacation rental because- in the long run, a vacation home could serve as a full-time home. Buying a vacation home, especially when you’re somewhat young, could provide you a suitable place to settle when you retire.
If you don’t ruin your vacation home primarily as a rental property, you’re probably going to acquire tax breaks for property taxes, mortgage interest, and insurance premiums.
Safety of Belongings
Having a vacation rental allows you to pattern your vacation home with your preferences and needs in mind. It also allows you to store your belongings and decreases transportation costs that would have been charged on such belongings in each trip.
For instance, if you own a beach house, you wouldn’t need to transfer your beach chairs and children’s beach toys on each vacation.
Generate Rental Income
Buying a vacation rental could help you save money in the future if you go on vacation frequently. Your mortgage payment annually for a vacation home is probably similar to the amount you will pay for two months of rent on vacation.
Also, you build equity over time by not giving someone else your money. Your vacation home could be used as a rental income generator when you’re away. A rental home can help you in building long term wealth and secure finances when you retire. You could decide to keep it or sell it; whichever you choose, you still gain.
The Best Places to Buy a Vacation Home in the World
Palermo, Italy
Palermo is a beautiful city situated in the warm, beautiful Mediterranean, Sicily, Italy’s largest island. It is one of the best places to buy a vacation home with lots of beautiful beaches and cityscapes.
The city offers various opportunities to learn about history at the elegant and lofty Teatro Massimo, a functional opera house.
Whittier, North Carolina
Another place to buy a vacation home in the world is Whittier, North Carolina. It is located between the Nantahala national forest and the Great Smoky Mountains. The median home sale price at Whittier is $178,000 with a capitalization rate of 7.9%
Kissimmee, Florida
Kissimmee is among the best vacation rental markets, located southeast on lake Tohopekaliga’s northwest shore. With nearby tourist attractions like Disney, Universal Orlando Resort, Legoland, and SeaWorld, vacationers are sure to have an exciting experience there.
Davenport, Florida
Davenport is a small city in Florida and is reasonably far from the theme park, giving residents the option of choosing when to avail themselves at the park. Vacation homes bought in Davenport offer vacationers top attractions, including lake Davenport, providence gold club, and real blue winery.
Naples, Florida
Naples is famous for its breezy beach town feel. Moving through the surf shops, cafes, and antique stores in Naples is refreshing and relaxing. Vacation homes in Naples are relatively expensive, although its real estate market is good.
You can also find the best vacation rental markets in Killington, Vermont; Sevierville, Tennessee; Dauphin Island, Alabama; and Key West, Florida.
Best Places to Own a Beach House
Besides having good potential for positive cash flow generation by real estate investors, the best places to own a beach house should also have affordable beach houses for tenants and investors with a high occupancy rate.
Fort Pierce, Florida
Beach houses in Fort Pierce, Florida, provide real estate investors with great options to have a beach house. The places have a median annual property tax of $902 and $89,100 median home value.
Pensacola, Florida
Americans and foreigners enjoy spending their holidays and vacations in Pensacola, Florida’s sunshine state with numerous beaches. With $850 median monthly housing costs, and $1,109 median annual property tax, Pensacola offers a great vacation option and opportunity for real estate investors. You can find the best beaches for rental income in Florida.
Long Beach, California
California has an attractive real estate market for real estate investors. One of the best places to own a beach house is in Long Beach city. There’s an opportunity to explore various housing investment strategies like traditional rentals and Airbnb rentals in the city.
Dauphin Island, Alabama
The Dauphin island separates the Gulf of Mexico from Mobile Bay, providing relaxation and a great water view. The island is known for its top-notch beaches and many water sports. Rental homeowners on the island get $269 per night on average from vacationers.
Port Arthur, Texas
Getting a beach house and mortgage in Port Arthur is very affordable, with a medium value of $64,300. Nevertheless, in comparison to home values, property taxes are high there. Hence, you should know all the expenses required in the long run before committing to buying a beach home in this city.
Final Words
Buying a vacation home is an excellent investment to make. A vacation home is a dual-purpose property, the best resort for a family vacation, an income source, and a long term wealth generator.
