For those looking to invest in a property to rent out, schofields.ltd.uk has revealed that Kissimmee will offer the best return on investment.
Topping the list, with a 26.02% ROI was Kissimmee, also known as Florida’s theme park central. The area is widely regarded as the top tourist destination in the United States
Online holiday home insurance company, Schofields Insurance, can reveal that Kissimmee in Florida is the best place to buy a holiday home if you’re looking for good return on investment when renting out a holiday home property. European city break favourite, Barcelona, also topped the chart, followed by Cornwall, for those looking to purchase potential rental properties closer to home.
For those looking to invest in a property to rent out, online holiday home insurance provider, schofields.ltd.uk, has revealed that Kissimmee will offer the best return on investment. Looking closely at the most widely visited tourist destinations around the world over the past couple of years, and those which are forecast to remain popular, they have compiled the costs of purchasing a property compared to the rental income it will provide.
The research compared the cost to purchase an average 90m² property in each destination with its annual rental potential.
Topping the list, with a 26.02% ROI was Kissimmee, also known as Florida’s theme park central. The area is widely regarded as the top tourist destination in the United States, with good weather year-round. Investors could see a potential return of over £30,000 each year.
Affordable property purchase prices and high holiday home rental yields for the cosmopolitan city of Barcelona also make it a good choice for those looking to have their own holiday home and make some money from it by renting it out. With potential to earn investors almost £38,000 after deducting costs annually on an average 90m² property priced at approximately £173,000, the average ROI here was calculated at 18.78%.
As part of their research, they found that in house prices in the Kissimmee area of Florida have averaged at between $160,000 and $199,000 over the past 3 years, and forecasts show that this rate will continue to rise, making it a good potential investment for the future while house prices are still comparatively low.
The research looked at the cost to buy in the following destinations around the world and the potential rent for an average holiday home annual season length to calculate an average return on investment for the area. The full results were as follows:
- Kissimmee, USA – 26.02%
- Barcelona, Spain – 18.78%
- Cornwall, UK – 12.01%
- Nice, France – 11.96%
- Lake Garda, Italy – 8.71%
- Venetian Riviera, Italy – 7.28%
- Miami, USA – 6.82%
- Marbella, Spain – 6.32%
- Faro, Portugal – 5.61%
- Albufeira, Portugal – 4.50%
- Avignon, France – 3.35%
- Lake District, UK – 2.89%
- Split, Croatia – 2.17%
- Pula, Croatia – 1.27%
Phil Schofield, Head of Inbound Marketing at Schofields said: “It’s not surprising to see that Kissimmee tops the list of best return on investment property areas considering the climate and attractions. It’s a hugely popular vacation destination for people around the world, even during the low season, meaning the demand for holiday homes is high, pushing rental prices higher, but property prices still remain low following the recession.”
He continued: “While these areas may be the best statistically for return on investment for holiday homes, it’s always worth taking it with a pinch of salt – just because the stats say it’s a good investment, you also need to look at other factors to maximise your return including the precise location of the home and the potential to increase revenue."
Properties that hold poor ROI can increase the number of weeks the property is rented by simply investing in marketing and the amenities, giving you the opportunity to retrieve back more money on the original investment.” For ease of access and year-round demand, finding the right property in Cornwall or the Lake District can be a shrewd investment, both for rental yields and capital appreciation.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
