With the advent of AirBNB and other companies for vacation rentals, people have a greater opportunity to expand not only their travel choices but their investment options. Here are some interesting possibilities to consider. But remember, you should always get the advice of experts before diving in to any kind of property investment.
We’re going to look at:
- Panama City, Florida, USA
- Paris, France
- London, England
- Santo Domingo, Dominican Republic
- Traverse City, Michigan, USA
Vacation Rentals: Panama City, Florida
According to Rented.com, this location is the number one top performer based on potential return on investment. With its sunny beaches and year-round warm weather, Panama City is a terrific location to consider. Serviced by Delta, American Airlines and United, it’s possible to book your research trips online. However, a better option would be working with a travel agent who makes money from sources other than you and knows more about accommodations and restaurants you should avoid.
Vacation Rentals: Paris, France
Paris has a lot going for it in terms of investment potential, or so says LiveAndInvestOverseas.com, whose blogger Lief Simon has owned there for roughly 15 years. Like most cities, prices fluctuate, but Simon feels Paris real estate is “one of the surest imaginable stores of wealth long-term.” Another feature of buying French, according to Simon, is that France is a country where foreigners qualify for in-country financing.
Vacation Rentals: London, England
This has always been a popular travel destination for people all over the globe. Close by for many Europeans and even more appealing to Americans since the marriage of Prince Harry and Meghan Markle, London has a lot to offer. Think in terms of low crime rates and access to public transportation. Also avoid four-bedroom, one bath properties and those without ample storage.
Vacation Rentals: Santo Domingo, Dominican Republic
Here’s one expert’s logic for investing in Santo Domingo: The Dominican Republic is experiencing an economic boom which means more business travelers having to pass through its capital, Santo Domingo, before going elsewhere in the country. So why shouldn’t you own a place where those weary travelers can lay their heads? LiveAndInvestOverseas.com reported in July 2018 that tourism was looking good, “with more than 6.5 million tourists in 2017, up from 5.9 million in 2016.”
Vacation Rentals: Traverse City, Michigan, USA
While some might be surprised to see a small town in Northern Michigan mentioned here, consider this: Traverse City was number one on Realtor.com’s list of 10 Most Profitable Markets for Vacation Homes. With an annualized rate of return of 14 percent and a median home list price of $315K, Traverse City is a big draw because vacationers from all over the Midwest are crazy about it. With the recent boost in the Midwest economy, cottages dating back to the forties are being bought up even as new housing is being built.
Some things to consider…
Keep in mind, however, that homes like these are not all warm beds and cold cash. Often, higher down payments and pricier insurance is part of the game, and that can slow profit potential – especially in places prone to tsunamis, earthquakes and wildfires. And what about landslides, beach erosion and flooding?
If you decide to visit some of these places, remember to line up all your travel documentation ahead of time, such as passports and visas. Americans visiting London are encouraged to register any overseas travel with the US Department of State. Research housing options, where to eat and the weather, especially in places with rainy seasons and other dramatic weather potential.
It’s a lot to think about, but also a lot of fun to think about. And buying vacation rentals and second homes can be well worth some careful investigation – especially if you’d like a place to stay where you’ve got connections to the owner!
There are always risks with traveling. Set your mind at ease with an Emergency Medical Plan. In case of illness or injury, we bring you home. For less than the cost of one plane ticket, you and your family can be covered for a year. Corporate plans are also available.
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