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Top 10 USA Vacation Rental Investment Markets
Top 10 USA Vacation Rental Investment Markets
Top 10 USA Vacation Rental Investment Markets
Top 10 USA Vacation Rental Investment Markets
Top 10 USA Vacation Rental Investment Markets
Top 10 USA Vacation Rental Investment Markets
Top 10 USA Vacation Rental Investment Markets
Top 10 USA Vacation Rental Investment Markets
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Top 10 USA Vacation Rental Investment Markets

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Safeguard Financial has compiled the list of The Top 10 USA Vacation Rental Investment Markets based on top tourism destinations in the USA each year, an average property price and the occupancy rates …

Safeguard Financial has compiled the list of The Top 10 USA Vacation Rental Investment Markets based on top tourism destinations in the USA each year, an average property price and the occupancy rates through out the year.

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  • 1. Top 10 USA Vacation Rental Investment Markets by Safeguard Financial www.IRA123.com
  • 2. Top 10 USA Vacation Investment MarketsA commonly asked question we get from our customers is “Can I invest my SelfDirected IRA into a vacation property?”The answer is simple: Yes you can. But you cannot vacation there. That would be aprohibited transaction within your IRA plan.Investing in vacation real estate is a dream for most real estate investors, but unlessyou have upwards of an 80% occupancy rate and a fantastic property managementcompany who promotes and manages it well the investment return could be a lotlower than regular income producing real estate with long term renters.We have however compiled the list of The Top 10 USA Vacation Rental InvestmentMarkets based on top tourism destinations in the USA each year, an average propertyprice and the occupancy rates through out the year. Research and resources can befound within Appendix A.Number 10: New York City, New York Average Listing Price: $1.2 million Estimated Visitors/Year: 48.8 million Average Daily Room Rate: $238 (2009) Occupancy Rate: 81.5% Attractions: Empire State Building, Statue of Liberty, Central Park, Museums.New York is one of the most expensive real estate markets in the United States,however there is still an opportunity to pick up studio or one bedroom units for under$150,000 in good areas such as the Upper East Side.With the amount of domestic and international tourism flooding into the city annuallyand turn key management or online booking engines, there is a potential to keep theproperty full for most of the year at the higher than average rates charged per room.Page 2
  • 3. Number 9: Washington, DC Average Listing Price: $350,000 Estimated Visitors/Year: 16 million Average Daily Room Rate: $199 (2009) Occupancy Rate: 73% Attractions: Smithsonian, National Monuments and Memorials, The Three Houses of Government.Being the capital of the United States, Washington DC is seen as a historical meccawithin the the USA. With foreign and domestic tourism growing, it is a vibrantlycultural city booming in the summer months.Property prices are some of the highest in the country, yet smaller foreclosed units canstill be found, fixed and rented out as vacation properties in popular tourist areas.Number 8: San Francisco, California Average Listing Price: $732,000 Estimated Visitors/Year: 15.9 million Average Daily Room Rate: $160 (2009) Attractions: Golden Gate Bridge, Alcatraz, Fishermans Wharf, Union Square, Museums.With the large amount of conferences, business meetings, central business hubs andworld famous tourist attractions, San Francisco has always been one of the topdestinations for international travel. Property prices remain exceptionally high as amillion people live and work on this small piece of land on the San Francisco Bay.Page 3
  • 4. Average room prices and occupancy rates remain constantly high, but with the highcost of the investment the return may not be as good as other markets.Number 7: Los Angeles, California Average Listing Price: $468,000 Estimated Visitors/Year: 25 million Average Daily Room Rate: $133 (2008) Occupancy Rate: 69% Attractions: Hollywood, Universal Studios, Rodeo Drive, Venice Beach.From Hollywood star spotting to shopping on Rodeo drive Los Angeles remains theromantic Twinkle Town vacation destination with 25 million visitors per year. As asprawling metropolis and a busy bustling city, Los Angeles is spread out across a largearea with little or no good public transportation system.The best areas for an investment property would be Beverly Hills or Venice Beachwhich would allow good access to the more popular tourist attractions. Hotelaccommodation can be found relatively cheap and occupancy rates are below nationalaverage, so providing accommodation with a difference may be the key.Number 6: Anaheim, California Average Listing Price: $274,000 Estimated Visitors/Year: 42.7 million Average Daily Room Rate: $110 (2009) Occupancy Rate: 64% Attractions: DisneylandPage 4
  • 5. Large numbers of family groups pass through Anaheim and the Orange County eachyear, mostly for a visit to Disneyland, which is one of the most visited Disneylocations in the world.Property prices in Anaheim remain pretty low, and it could be an opportunity to buybigger units to accommodate large family groups.Number 5: Dallas, Texas Average Listing Price: $229,000 Estimated Visitors/Year: 27 million Average Daily Room Rate: $130 (2009) Occupancy Rate: 68% Attractions: Dallas Cowboys, Museums, Amusement Parks.With Texas being one of the strongest economies in the nation, Dallas hosts largenumbers of domestic travelers for conference and business meetings, as well as beingthe gateway for international tourists.Property prices are really low, and room rates remain pretty high as the economycontinues to grow.Number 4: Las Vegas, Nevada Average Listing Price: $295,000 Estimated Visitors/Year: 37.3 million Average Daily Room Rate: $95 (2010) Occupancy Rate: 80% Attractions: Gambling, Las Vegas Strip, Shows and Entertainment.Page 5
  • 6. Las Vegas remains one of the hardest hit property markets in the country. It isestimated that properties would have lost a total of 66% in value by the end of 2012.Although hotel rooms and flight packages are cheap and easy to find, there is also amarket for self catered family accommodation close to the strip.With gambling and travel not slowing down during the recession, it is still one of themost popular domestic destinations within the US.Number 3: Miami, Florida Average Listing Price: $378,000 Estimated Visitors/Year: 12.6 million Average Daily Room Rate: $144 (2010) Occupancy Rate: 80% Attractions: Beaches, Museums, Miami Zoo, Party Night Life.Miami South Beach, or SoBe as it is known by the locals, is one of the most famousbeach destinations in the world for trendy and exclusive bars, clubs and restaurants.Spring break and summer months are jam packed with travelers, and findingaccommodation can usually be a tiring affair. Property prices have decreaseddramatically during the recession and you can pick up a good investment in the SouthBeach area for under $100,000.Page 6
  • 7. Number 2: Chicago, Illinois Average Listing Price: $175,000 Estimated Visitors/Year: 31.9 million Average Daily Room Rate: $113 (2010) Occupancy Rate: 61% Tourist Attractions: Millennium Park, Buckingham Fountain, Sears Tower, Shedd Aquarium.For business or vacation travelers there is a lot to do and see in the Windy City,attracting just under 32 million visitors per year. Property prices have taken a huge hitduring the recession, and investments can be found in popular tourist areas forridiculously low prices.With a really good rail system, lots of outdoor activities in the summer and coldwinter months, this makes it a great place for investing in a nice little vacationproperty for business or pleasure travelers.Page 7
  • 8. Number 1: Orlando, Florida Average Listing Price: $114,000 Estimated Visitors/Year: 50 million Average Daily Room Rate: $92 (2010) Occupancy Rate: 63% Attractions: Disney World, Sea World, Universal Resort Orlando.Disney World put Orlando on the global travelers map, but Sea World and otheramusement parks such as Universal Resort Orlando continue to pull over 50 millionvisitors to the area each year. Orlando however has been one of the hardest hit areas inthe recession with properties losing over 50% in value over the last five years.Tourism remains high, and there is strong competition with large hotel chains, butlarger units offering self catering for families may perform well in this area.If you are interested in Vacation Property Investing, speak to an advisor at SafeguardFinancial to take advantage of these markets and invest into Real Estate with your401k. Call 877-229-9763 or visit www.ira123.com.Appendix:A: Click here for the Research Document.Page 8

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