- Vacation rental management company Vacasa has ranked the best places to buy a vacation home.
- He investigated major destinations that stretch from Maine to Georgia to Washington State.
- Insider highlighted the 13 places where median home prices are below $450,000.
Summer may be winding down, but it’s never too early to plan for next year.
For vacationers who might have fallen in love with a waterfront lifestyle, or the lucky ones looking to make a smart investment, Vacasa, a rental management company, has released its top 25 best places to buy a vacation home.
Vacasa ranked locations using proprietary data to project where rental income could be highest.
The company calculated capitalization rates to show how profitable a house could be: first, the company calculated potential earnings by subtracting expenses such as taxes, utilities, insurance and management fees rents. Then he divided that number by the median house price.
Vacasa’s data showed that top destinations had been recorded with cap rates ranging from 6% to 12%, which Vacasa considered solid. Tyler Jah nke, a real estate investor with Roofstock, a real estate investment marketplace, put a finer point on cap rates on the company websitenoting that a 6% level “may suit an investor looking for a more passive and stable investment”, although a higher level means more risk and higher returns.
Insider highlighted destinations where median home prices were below $450,000. The feverishly competitive housing market of the past two years has cooled slightly, yet real estate prices remain historically high in the United States.
Florida dominates the selection with five cities on the list. Cities in the Sunshine State included Daytona Beach, which had the lowest median price of any selection at $260,000 in July. Other classic vacation destinations like historic Savannah, Georgia and scenic Tucson, Arizona have also popped up..
Hidden gems appear in Westport, Washington, a fishing spot; and Lake Anna, Va., a DC regional treasure.
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