It goes without saying that the global vacation rental investment landscape changed in 2020, and it’s expected to experience further development. After travel was restricted last year, the best places to invest in a vacation home are different from those from a few years ago. If you’re in the real estate market to purchase a vacation property, 2021 may just be the best year to buy one because the events from 2020 have shifted the demand away from big resorts and hotels toward private properties.
Vacation real estate like homes and villas have been people’s favourite for a long time because they offer plenty of privacy and intimacy. Private properties assure serenity and safety during these times, so it’s a good idea to invest in one, no matter if you plan to use it for your vacations or to rent it for tourists. Vacation rentals are hot investments right now because people rather prefer private real estate instead of hotels.
The vacation real estate market is booming
More and more travellers are shifting their focus to private houses for rental. As expected, the more popular destinations are the ones in road-accessible destinations because tourists want to stay in a place that allows them to explore the surrounding areas. Travel experts reported that 2020 was a year when the interest in private vacation homes surged, and they believe that vacation real estate is a solid investment opportunity, especially in areas where the gambling laws facilitate people’s access to entertainment activities. Vacation real estate is the perfect opportunity to maintain financial stability in a volatile market when the potential for inflation is high. Having alternative assets in travel destinations that are sure to rebound after the pandemic is a great strategy.
How can you choose the best place to invest in vacation homes?
In order to locate the best places to invest in vacation real estate, this article provides several metrics to help you in the process. Unsurprisingly, things are quickly changing amidst the ongoing pandemic, and you need to make a comprehensive analysis to identify the ideal location.
The pillars of your analysis should be.
- Rental demand. Check how often the rentals in the area are booked throughout the year. You can calculate it by using the annual occupancy and listing growth rates to identify the travel demand in the market.
- Revenue growth. Did real estate earn more in the last months than they did a year before? Calculate the revenue growth by looking at the chance in year-over-year RevPAR for vacation homes that were booked during the same periods.
- Investability. This metric compares the cost of homes using value data to the average income of rentals on booking websites. As expected, because people want to enjoy their vacations, they prefer the properties located close to casino venues and other entertainment opportunities. So, if you can purchase a vacation home near a casino that offers progressive jackpot, you should purchase it because it’s a profitable investment opportunity.
The best places to buy vacation real estate in 2021 are different.
You may be surprised to notice that some of the areas listed at hot markets for vacation rentals have never been featured on an investment report before. There are multiple reasons why this happens.
- People have focused their attention towards rural destinations that registered an unprecedented demand
- Travellers have started to avoid urban-centric travel because they try to avoid crowds of people.
- With more people working remotely, the lines between living and travelling have been started to blur.
- In 2020, we noticed a drop-off in the number of listings.
The best places to buy a vacation homePanama City Beach
Florida has been described as a vacation rental paradise because it’s located in an area with 320 days of sunshine and kilometres of white fine sandy beaches. People are travelling overseas to visit the Sunshine State. Panama City Beah is the ideal choice for a vacation home, whether you want to hold it for personal use or rent it to tourists. It has perfect weather all year round, it’s affordable for the average traveller, and it’s known for its emerald green waters. In 2019 it was rated as one of the most profitable travel destinations from America.
Panama City Beach has more than beaches; it also has a boasting nightlife and many casinos for passionate gamblers.
For a mountain lover, there is no more beautiful destination than the Great Smoky Mountains of Tennessee. You may be one of the people who doesn’t want to get down to the beach during their holidays but get lost in the wilderness of the mountains and have a taste of the mountain life. You can have a fantastic holiday if you have a vacation house in this region. And where do you count that the location draws over 13 million tourists annually, being described as one of the most beautiful places in the USA?
If you afford an investment in a tropical area, you shouldn’t miss this opportunity. There are a couple of available houses on the market in places like the Turks and Caicos that have a beachfront location, private pool, gym and waterfront living areas. Real estate experts describe them as hotels disguised as homes because they have plenty of square feet of space and often come with private docks.
Tourists find it appealing to rent private homes because it allows them to remain within a travel bubble isolated from the crowd. They can hire staff to help them clean and cook, but they don’t have to meet them because they can complete their tasks while the tourists are away from home. The Turks and Caicos Islands have been hot destination for vacationers who want privacy because the real estate market provides many rentals.
You can purchase an independent property or invest in a villa that is part of a larger resort complex.
Are you ready to expand your real estate portfolio with a private vacation home?