Investing in a vacation rental has many benefits. Not only can it provide a steady stream of passive income, but it also diversifies your real estate portfolio and gives you a place to stay when you travel. There are millions of vacation rental properties across the globe, and finding the right place to invest depends on a few different factors.

As you research the best location for your vacation rental investment, you may want to consider:

  • Where do you personally like to travel?
  • Where are places that other people like to go on vacation?
  • What type of property are you looking for? (beach home, cabin, condo near tourist attractions?
  • Where can you get the most for your money?

Once you’ve answered these questions, you’ll have a better idea about where to start looking for a vacation rental. To find the right property and increase your chances for consistent income and maximum ROI, start looking in some of the most popular vacation rental destinations across the globe:

  • In The US
  • You can find almost every type of vacation rental in the US. With such a diverse geography and melting pot of cultures, it is a top vacation destination for people from all over. Some of the most profitable places to invest in vacation homes in the US are:

    • Florida-When you think of Florida you may think of theme parks and beaches, and while Florida is famous for both, there is a lot more to the Sunshine State to explore. Key West is known for tropical beachfront bungalows, and you can invest in peaceful cabins to the north. There are also high rise apartments and single-family homes in Central Florida, close to Disney World.
    • Tennessee-Tennessee has mountains, lakes, rivers, hiking trails, and cabins tucked away in the woods. Home to the Great Smoky Mountains National Park, this is a popular destination for people who want to connect with nature, while also having easy access to dynamic art and music districts, historic museums, theme parks, famous eateries, and local attractions.
    • California-California is diverse and beautiful, offering world-famous beaches on the coast, snow-capped mountains in the north, and bustling metropolitan areas in the south. It’s expensive to live here, but people come from all over to be a part of the excitement and potential that the west coast has to offer.
    • Vermont-Travelers looking for a winter wonderland choose Vermont for the perfect ski vacation experience. While many people think Colorado when they think of skiing, Vermont is only five hours from NYC and is known as the best ski area in the east. Real estate is significantly more affordable in Vermont that in major cities like Boulder.

  • In Europe
  • Europe has a rich history and 44 distinct and unique countries to explore. Each country is so different from the one right next to it. People from all over the world dream of visiting this vast and diverse continent, and investing there can be a profitable adventure. Some of the best places to invest in Europe are:

    • Finland- Finland has a high rental demand and a popular place for short term rentals. It is known for its stunning architecture, stunning natural beauty, and sprawling national parks. There is a high demand for short term rentals in major metropolitan areas.
    • France- One of the most romantic cities in the world, France is a top tourist destination and has an active vacation rental market. In fact, rental prices are almost 13% higher in France than in the UK, meaning people are willing to spend more to secure a vacation home in the City of Lights.
    • Spain- Spain is the 3rd most popular tourist destination in the world, and when people come they want to rent a home to experience the authentic Spanish lifestyle. In Spain, the demand for long term rentals (3 months or more) is much higher than short term rentals.

  • In Asia
  • Asia is a breathtaking mix of natural beauty, art, culture, and history. Asia is a welcoming place where real estate is affordable, the nightlife is like no other, and the culture is unlike anywhere else in the world. Asia can be a party destination, an educational retreat, a family adventure, or a romantic getaway. You could spend months in Asia and still not see everything there is to see. Some of the most popular places for vacation rentals in Asia include:

    • Kuala Lumpur- A bright and busy metropolitan area of skyscrapers and colorful temples, Kuala Lumpur is warm and set against the gorgeous greenery of the jungle. It is a unique blend of traditional Asian culture, modern design, contemporary culture, and natural beauty. Home prices are rising in Kuala Lumpur, and the city is a popular destination for wealthy business travelers.
    • Seoul- One major benefit of investing in high rises and apartments in Seoul is that the admin and management fees are significantly lower than other major Asian cities. You’re not required by law to pay for insurance (although you still should) and its strategic placement on the map makes it a top destination for foreign investors.

  • In Australia
  • Australia is a nature lover’s paradise. It is a place for road trips, hikes, beach days, and mountain climbing. It experiences a wide range of climates, has incredibly unique wildlife and ecosystems, and sunrises that will take your breath away. Real estate in Australia is some of the most expensive property in the world, but if you have the capital, it can be one of the most profitable places to invest. Some popular places to invest in Australia are:

    • Kangaroo Island- People don’t come to Kangaroo Island to stay in a hotel. The absence of hotels and resorts in the area means people who come here are looking to experience the authentic Australian lifestyle. While property is still pretty expensive here, the demand is high for luxury homes near the water.
    • Brisbane- Tourists who want to experience Australia but don’t want to feel cramped in overpopulated cities like Sydney and Melbourne look for property in Brisbane. The warm winters and gorgeous scenery makes it a favorite spot for those looking for short term rentals. You can also get a lot more for your money here than you can in Melbourne, and top-rated schools mean higher home values throughout the city.

  • In South America
  • South America is known for its beautiful beaches, warm climate, friendly residents, and a relatively low cost of living. Travelers visit South America to be surrounded by culture, art, good food, music, history, and natural beauty. Affordable real estate and a strong economy make it a great place to invest. If you’re thinking about investing in South America, consider looking in:

    • Costa Rica- Costa Rica is known for being one of the safest and friendliest places in South America. As one of the world’s leading vacation destinations, Costa Rica sees tourists all year long, which means landlords and investors can expect a steady stream of income without drastic slow seasons. Low property taxes help make investing easy.
    • Argentina- Argentina’s vacation rental market is steady, and growing quickly. People come here for the beautiful geography, rich culture, and thriving nightlife. Investors buy here because the cost of living is low and there is a high demand for temporary and student rentals.

    There are many benefits to investing in international real estate. It allows you to expand your real estate networks, diversify your portfolio and offers many tax benefits.

    REIFGO is dedicated to providing investors with all of the information they need to make smart and confident real estate decisions. If you’re thinking about buying a vacation rental, take the time to pick a location that aligns with your lifestyle, budget, and financial goals.

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