US: Property management company Vacasa has detailed the findings from its latest report, “Best places to buy a winter vacation home 2019”.
From enjoying the warmth of a fire after a long day on the slopes to sipping cocoa with the kids at the kitchen counter, there is a lot to love about winter vacation homes. Buyers looking to invest in a winter vacation home have much to consider, but one thing is sure to remain constant: travellers cannot resist the appeal of cozy A-frames, plush mountain condos, and classic log cabins with room to sprawl.
Read on for our 2019 list of the best places to buy a winter vacation home. Those that made the list this year have an almost built-in guest population, as they are situated just a short drive from highly populated residential markets and draw plenty of visitors from the surrounding area. And while winter activities bring many travellers to these destinations, the summer offers opportunities for hiking, mountain biking, kayaking, and more that keep vacation homes booked when the snow melts.
Investments that will not leave you cold
In this report, we rank vacation rental markets based on aggregate cap rate, the ratio of a propertyโs net operating income over its cost.
To determine net operating income for this report, we first calculated gross rental income for each market. From there, we subtracted each marketโs average operating costsโfactoring in things like management fees and property tax rates. Finally, we divided those figures by the historical costs of buying a vacation rental to determine cap rates for each market.
Familiarising yourself with cap rate will help you make a more informed choice when deciding where to buy a winter home.
Here is where we think you should start your search:
- Killington, Vermont
Market size: 1,198
Median annual gross rental revenue: $39,797
Median home price: $211,172
Cap rate: 8.31 per cent
- Big Sky, Montana
Market size: 1,330
Median annual gross rental revenue: $66, 744
Median home price: $585,000
Cap rate: 6.10 per cent
- Breckenridge, Colorado
Market size: 8,008
Median annual gross rental revenue: $57,699
Median home price: $556,905
Cap rate: 5.56 per cent
- Dillon, Colorado
Market size: 3,864
Median annual gross rental revenue: $40,506
Median home price: $401,894
Cap rate: 4.92 per cent
- Ludlow, Vermont
Market size: 740
Median annual gross rental revenue: $38,154
Median home price: $304,273
Cap rate: 4.83 per cent
- Rhododendron, Oregon
Market size: 251
Median annual gross rental revenue: $34,738
Median home price: $316,712
Cap rate: 4.73 per cent
- Warren, Vermont
Market size: 446
Median annual gross rental income: $33,328
Median home price: $263,752
Cap rate: 4.57 per cent
- Leavenworth, Washington
Market size: 1,258
Median annual gross rental revenue: $42,700
Median home price: $441,617
Cap rate: 4.36 per cent
- Shaver Lake, California
Market size: 336
Median annual gross rental revenue: $41,958
Median home price: $457,440
Cap rate: 4.25 per cent
- Big Bear City, California
Market size: 1,407
Median annual gross rental revenue: $29,910
Median home price: $297,089
Cap rate: 4.11 per cent
To view the full report, visit the Vacasa website here.