Top Destinations to Buy Vacation Houses
Real estate has been a prime choice for investors who are looking for higher returns. Recently, one of the most popular real estate investment opportunities that have been gaining traction is vacation rental properties. Technavio experts predict that the global vacation rental market will grow seven percent annually and will be worth $194 billion come 2021.
This is because most of the travelers are gradually becoming more adept at knowing the advantages of short-term rental properties over traditional hotels. Unlike hotels, short-term vacation rentals are often more economical, especially with groups. Plus, it also enables travelers to interact with the locals and explore the history of the location.
Moreover, vacation rentals are lucrative investments and can build equity over the long run. Make sure to take an in-depth look at these locations before deciding to purchase a vacation rental property.
Where to best purchase vacation houses?
Saint Augustine, Florida
Often referred to as the oldest US city, Saint Augustine, Florida, is one of the top vacation destinations for American and international travelers. This is due to its rich outdoor recreation and easy access to prime beaches. The median annual rental revenue in Saint Augustine stands at $50,989, while the average property price is pegged at $209,100.
This is a great return rate, which could possibly increase if you choose to add amenities like a hot tub, clubhouses, and a private pool.
Anna Maria Island, Florida
With meager real estate costs and warm weather for year-round tourism, Anna Maria Island leaves plenty of room for investors to generate a significant rental income. Keep in mind that accommodations like Anna Maria Island vacation rentals continue to see high demand over the past year.
Reports show that the median home value in Anna Maria is approximately $1,000,600, which is four times more than Saint Augustine. Anna Maria Island vacation rentals range from beautiful condos, single-family residences, and townhouses which are equipped with a magnificent beachfront.
On top of that, homes in Anna Maria Island are often lying low to the horizon and small in sizes. Therefore, providing vacationers with a classic 50s neighborhood look that resembles the old America.
Located in the mountain town of Eastern Tennessee, Gatlinburg is one of the top family vacation destinations in the country. With an established vacation rental market, increased visitor rates, and commercial real estate values, Gatlinburg is one of the places where rookie investors can start their journey. It is also geared with in-demand facilities like mountain views, game rooms, proximity to attractions, clubhouses, and indoor pools.
Estimates show that the average rental property can generate $2,230 per month and more than $26,000 annually. Presently, the median price for a home in Gatlinburg is valued at $239,500.
Maggie Valley, North Carolina
Tucked in between the Smoky Mountains area of Asheville, North Carolina, Maggie Valley offers a median rental income of $38,389 per year and an average property price of $155,500.
The biggest drawback in this area is its proximity to the mountain range and natural resources that provide round-the-clock activities like hiking, skiing, and leaf-peeping.