winter vacation home
A winter vacation home in Killington, Vermont [Credit: Vacasa]

Vacasa: Best places to buy a winter vacation home 2019

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 property’s 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 market’s average operating costs—factoring 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.

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