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While vacation rentals in the most popular vacation destinations can still deliver healthy returns for homeowners, climbing median home prices are affecting cap rates in several of our past top markets. That cap rate compression gives buyers even more options to consider, with over a dozen new markets on the list this year. Wondering where the best places to buy investment property in the Caribbean are? For buyers looking for the best place to buy vacation rental property in the Caribbean, certain destinations are more likely than others to offer investment opportunities with high income-generating potential. The country has a highly developed tourism sector which welcomes more overseas visitors than any other island destination in the region. With a steady stream of incoming tourists, there is a constant need for accommodation.
The Flordia Keys are known for being fun for the whole family, snowbirds or retirees, spring breakers, and party lovers. These 137 square miles of tropical escapes are hard to forget, and this might just be where you want to put down some island home roots. She has a background in academic research and is the author of London Writing of the 1930s.
Best Places to Buy a Beach Vacation Home in the U.S.
The north coast of the island has some of the finest beaches in the Caribbean, the east coast is a sportsman’s paradise with some of the newest designer golf courses in the region. The vibrant expat community on Roatán means you’ll never be short of friends or things to do. Boating trips to nearby cays…parties, cookouts, potlucks, and other celebrations…beach barbecues …dinners out… The social life is great. This is an island where “normal” people can buy a vacation home or permanent digs to live out their sunny, low-cost, and comfortable retirement.
Property buyers can choose between condo and apartment units, houses and lots, and even entire resorts. After several years of historically high demand—coupled with historically low inventory—the real estate market is stabilizing and inventory is catching up. That’s good news for buyers who have more opportunity to regain some leverage in what is still, predominantly, a seller’s market.
Delray Beach, Florida
With a vacation house amidst Batanes’ dramatic scenery, you would enjoy the sight of softly rolling hills, picturesque Mount Iraya on Batan Island, or the majestic Pacific Ocean. Known for its unspoiled aquamarine waters and extensive coral gardens, the Island Garden City of Samal is a mere 15-minute boat ride away from Davao City. Populated by resorts, the most famous of which is Pearl Farm, Samal also offers the charming Hagimit Falls and various snorkeling and scuba diving sites to vacationers. A haven of natural beauty both under water and on land, Bohol is easily reachable via air and sea.
Working with real estate agents, developers and owners, our service seeks to provide you with some of the very best island properties for sale and rent in the Caribbean, Canada, Central America and the United States. Bonaire and Curacao, known as the Windward Islands of the Netherlands Antilles, are located off the coast of Venezuela, below the hurricane belt. Curacao offers a new airport terminal and several hotel developments in hopes of attracting more visitors. Bonaire has become an ideal destination for visiting divers; the water surrounding the island has been designated an official marine park and possesses incredible visibility of between 100 and 150 feet. So there’s a window of opportunity for buyers who were previously priced out of the market.
Starting Over in Iloilo: This Exclusive Community is Your Next Home
As hurricane season comes to a close (it runs from June 1 to Nov. 30) Cangialosi says this term has been uncommon. But the Caribbean is also known for hurricanes, which are a constant worry. As hurricane activity has become more intense in recent years, some are questioning whether it makes sense to purchase a vacation home in a region where property can be destroyed in the blink of an eye.
In the same report, 46% of buyers said they’re looking to start generating income today, which is exactly where Vacasa can help—offering full-service vacation rental management. Having that 'small town' feel takes on a new meaning in Norway - not only are its towns small enough for everyone to know their neighbors, but this country truly knows the meaning of community. There's plenty to do for the active lifestyle, as well, as Norway is a beautiful place to explore. Real estate isn't what many people expect there, though, and the median price for a house is roughly $280,000, according toReal Estate Agent, which is not much different than finding a house in many states across the U.S.
Top 25 markets for buying a vacation home in 2022
For instance, Sevierville gets massive traffic thanks to the national park, putting the rental occupancy rate at a high 77% and makes revenue potential a lucrative $5,800 per month. Home to the country’s second most important city, with thriving business centers and a major trading port, Cebu may not strike anyone as an island escape. But the white-sand beaches, world-class diving sites, and marine sanctuaries of Mactan, Pescador, Bantayan, and Malapascua prove Cebu is a great destination for some R&R. Thrill seekers would especially love Pescador, where swirling schools of sardines can be found, a huge underwater cave called “The Cathedral” can be explored, and Malapascua, where thresher sharks can be seen daily.
Here, where the cap rate stacks up at 7.7%, log cabins offer a front-row seat to nature and sitting around a campfire roasting marshmallows is always in season. Key Largo and Islamorada are off-limits for budget buys, but Key West, Florida's southernmost point, has a few small condos available in the Santa Clara community that fit the bill. Alternatively, there are some boathouses docked in Marathon just waiting for their next adventurous (and budget-friendly) owner. At any given time, there are several hundred properties under $150,000 for sale.
In fact, it’s not unusual for a neighbor to show up with their dog, and a bottle of wine in hand,” says Julie. The Goffs used the funds from the sale of their home and business to build their new island home. It covers about 2,000 square feet, and they spent about $700,000, all total. It’s in North Carolina High Country between two ski resorts, Sugar Mountain Resort and Beech Mountain Resort. It’s known for its amazing coral reef, flapping flamingos, and even has a mountain for mountain climbing.
This area of the island is peppered with pastel-colored beach homes and townhouses, some with beachfront views and almost all with the pool amenity box checked. Luckily, vacation homes here are relatively affordable, with a median home sale price of $295,000, and a cap rate that’s a 10 (10.7%, to be exact). If you would like to buy a property overseas by the beach, you can’t go wrong with the Caribbean. Practically all islands in the region are fringed by beautiful beaches so you are spoiled for choice.
Many inexpensive properties are inland or in some state of despair—ideal for DIY buyers with imagination. For example, at $100,000, you can purchase a two-bed, one-bath home in Guayama—near Jobos Bay Natural Research Reserve. The Commonwealth of Puerto Rico is a U.S. territory in the Caribbean.
With Vacasa's full-service, professional vacation rental management, you get a trusted local team on your side—and a whole lot more. Get a peek at our top 10 below—and check out the full report with market insights, including average annual rental income, for all 25. Vacasa’s 2021 Vacation Rental Buyer Report revealed that most buyers (36.4%) currently in the market are looking to spend under $399,999, which aligns nicely with median home sale prices in many of our 25 best places to buy. Croatia is known for its old-world charm and stunning seaside architecture, much of which is carved into various towns along its cliffsides. Everything about this country, from its food to its culture, is loved by all who visit. The crystal-clear aquamarine waters that surround the country don't hurt its reputation, either, and it's the perfect place for those who can't bear to be away from the seaside.
The best Caribbean islands to invest in real estate will depend on what you’re looking for. But the typical value of a home in Pagosa Springs is $470,132, which is more affordable than the state’s home value index of $586,317. If you’re looking for rental income, the occupancy rate is on the rise — making it an excellent area to invest in. On the northeast coast of Florida, St. Augustine is home to beautiful blue skies and sandy beaches. The typical home value of $478,434 means you’ll pay about $3,971 in property taxes.
