So you’re looking for the best places to buy a vacation home in the world. Maybe you’ve just gotten a significant return on investment and want to put the money into something tangible that you can enjoy. Perhaps you already have a vacation home but want to broaden your horizons so you have more options for spending your precious vacation time. Whatever the case, you’ve arrived here looking for a good place to buy a vacation home.
Now, you can buy a home in many places, from sunny Mediterranean towns to balmy island beach getaways and breathtaking glacier vistas, but ultimately which one you choose is up to you! The climates and languages of these locations vary, but they all have one thing in common: they’re all great places to go on vacation!
In this article, we’ll list some top destinations for those looking to buy a vacation home and measure everything from the cost of living to renting your house to Airbnb patrons when you aren’t on vacation. Let’s get into it!
- Considerations before buying real estate overseas
- Best locations for a vacation home overseas for US citizens
- Unlocking the Diversity in Vacation Home Buyers
- Are overseas vacation homes a good investment?
- How do you maintain a vacation home overseas?
Considerations before buying real estate overseas
Before venturing into an unknown housing market overseas, consider some things. I know that spending your golden years in someplace warm and sunny might be very appealing to you, but buying property overseas will be a different experience. Whether you prefer the traditional home around the world or not, before you fall in love with this ultimate vacation spot, here are five things to consider.
Foreign Ownership Laws
Remember, individual countries have the right to place restrictions on non-citizens, which is especially important if you want to own property. Even if the country’s laws allow you to own property, you might still have to obtain special residence permits or register with a government agency to complete a home purchase. If you are unaware of other countries’ laws for foreign real estate purchases, contact a real estate attorney who knows how to execute foreign transactions.
Financing
Not everyone will have an impressive amount of money waiting to be invested in foreign real estate. That is why you have to consider financing to see if it is possible for foreigners. Most foreign banks will accept finance only if you are willing to shell out a big down payment and take a high interest rate. Some lenders might even require you to acquire a separate life insurance policy if something happens to you. Financing a home purchase overseas can be costly and taxing if you reach a desperate situation where you can’t make payments, so be prepared to take risks.
Costs of living
Even if financing might be more taxing for non-citizens, investing in real estate in a country with low living costs is still worth it. However, this is only sometimes the case, and even though real estate might be cheaper than the current city you are in, some other expenses might counteract the inexpensive housing. If you plan to purchase a home overseas, scout the areas and learn more about living costs and how they compare to your current city.
Tax liability
Tax might not be very kind to foreigners, especially if you want to purchase a property. When moving overseas, consider any tax rules that might apply. Taxation might apply when buying the property and when it comes time to sell again. Making tax payments throughout the year (similar to US property taxes) is not uncommon in most countries. Educate yourself and make sure you know how buying a home overboard will affect your tax situation.
Have an exit strategy
What I mean by that is not to break the law but to know the housing market well enough to have a backup plan in case things go sideways. If you are ready to move on and sell the property, you might discover that the market is quite cold, and your listing may lurk for months or even years! Factor in the local market conditions and have an exit strategy so you don’t get stuck with the house for long if you want to sell.
Best locations for a vacation home overseas for US citizens
When choosing a location for your new vacation home, you literally have all the options in the world! Where you decide to go depends on when you will take your vacation and what type of vacation you want. A great way to ascertain what exactly you want from your new vacation home is to do a SWOT analysis on potential locations for your new vacation getaway.
If your idea of a great vacation is two weeks spent sunbathing on the beach with the sound of the ocean gently lapping at the shore, you can buy your second home in the Mediterranean or Caribbean. Suppose you’d instead go for unconventional vacation ideas and spend your holiday hiking through mountainous fjords with breathtakingly beautiful glacial vistas. In that case, you might consider buying a home in one of the Scandinavian countries. Let’s look at some ideal locations to buy your second home abroad!
1. Palermo, Italy
Situated in the beautiful, warm Mediterranean on Italy’s largest island, Sicily, Palermo’s beautiful city is first on our list of best places to buy a vacation home in the world for US citizens. There’s plenty to be said about Palermo; the climate is warm year-round, and there are plenty of gorgeous beaches to explore in addition to its many beautiful cityscapes. Aquaphiles will undoubtedly be enamored by the many lovely coves and ports where swimmers can freely dive into, swim through the warm, crystal-clear water, and take in the many underwater sights. To be sure you take full advantage of this beautiful location, arm yourself with tips for traveling to Europe. They will be your compass in this thrilling journey.
If you enjoy learning about history, Palermo offers various opportunities to do just that! At the towering but elegant Teatro Massimo, you can delve deep into the history of theater in a place where many of our modern-day ideas about the performing arts were formed.
But this isn’t just a historical relic; it’s also an operational opera house! The Teatro Massimo has some of the best acoustics of any opera house in the world, and anyone who visits will be able to listen in awe as flawless vocal harmonies reverberate off the theater’s lofty interior.
However, that’s not all there is to explore; nearby Palermo is the ruins of dozens of ancient sites rich with deep historical significance. The Catacombe Paleocristiane di Porta d’Ossuna offers a fascinating glimpse into the ancient Romans’ religious traditions surrounding death and mortality. At the Palazzo Cattedrale di Palermo, you can immerse yourself in one of Italy’s most significant places of worship as you wander the halls of this 1400-year-old Cathedral.
Italy is renowned for its food and wine, so a trip to the nearby wineries is an excellent idea for spending an afternoon indulging in the finest things in life. You might even stumble upon some of the best wineries in Europe.
If you want to buy a home in Palermo, you’ll have to buy a heavy pocketbook; Palermo is not cheap. However, its long list of beautiful and fascinating attractions far outweighs its hefty price tag, and we’re sure you’ll agree if you make your second home in Palermo, Italy!
2. Oranjestad, Aruba
If you’ve researched buying a second home in another country, chances are you’ve heard of a little island called Aruba. This picturesque little island paradise is widely touted as one of the best Caribbean vacation spots, and for good reason! With beautiful beaches, a balmy climate, and crystal-clear water, this tropical getaway might be where you spend your vacation days.
But don’t be fooled; Aruba isn’t just about sunbathing and relaxing; for more active vacation-goers, Aruba offers the opportunity to participate in various watersports and dry-land activities. If you enjoy spending time in the deep blue, you will surely enjoy surfing! Aruba is a great place to surf, with large waves and long daylight hours. Or, why not try jet skiing? For those who don’t have the physical chops to spend all day paddling back out to catch the next wave, Jet Skiing might just be the thing for you. Nothing matches the feeling of racing across the surface of the deep blue Caribbean when riding a jetski in Aruba!
If you decide to make your vacation home in Aruba, you won’t regret it! Also, beachfront condos are a good investment for vacation rentals. For starters, houses in Aruba are relatively affordable! The home prices are as little as $100,000, with more luxurious offerings going for up to $700,000. Additionally, the real estate market in Aruba is consistently on the uptake, so a real estate purchase here is likely to be a good investment. Between the beautiful beaches and the sunny tropical climate, you won’t be able to avoid having the time of your life, and if you buy a vacation home here, you can do it every year!
3. Bergen, Norway
Now, when you think summer vacations, there’s a good chance that snowy mountain ranges, frigid glacial rivers, and rows of neat, modern, Scandinavian-style houses aren’t the first things that come to mind. Allow us to change that! Bergen, Norway, is an immaculate city on the southern coast that boasts a wide range of things to see and do that might just put this nifty little hotspot on your map! Once you’ve heard all the great stuff Bergen has to offer, you will agree that it’s a great place to make your second home abroad.
First of all, if you like beautiful views, Norway is the perfect place for you to buy your second home. Take Norway’s fjords, for instance. Carved from the earth by the flow of water created by melted glaciers, these majestic waterways are an awe-inspiring sight. Whether you do so from the deck of one of the many cruise ships that traverse the fjords or from the window of your vacation home in Bergen is up to you!
For those who like exercise and a challenge, never fear; there’s something for you too! Norway has dozens of great places to test your physical prowess, from gently rolling hills to frosty snow-covered mountains. If you make your vacation home in Bergen, the only choice is hiking or mountain climbing!
After looking at what Norway offers, we’re sure you’d agree that this is an excellent option for buying a second home abroad. If you choose to buy a house here, you’ll have to remember that real estate in Bergen is not cheap. A medium-sized home in Bergen will cost you somewhere in the neighborhood of 3,781,000 Norwegian Krone, or $354,000.
However, the real estate market is lively and competitive, so buying a home here wouldn’t be a bad investment. Whether you’re drawn in by the beautiful scenery or the daunting but doable physical challenges, you’ll surely enjoy your vacation when you make your second home in Bergen!
4. Dubrovnik, Croatia
Here’s one you probably didn’t expect: the breathtakingly beautiful city of Dubrovnik, Croatia! This well-kept secret is one of the most beautiful cities on the continent and a great location to buy a second home!
If you like classical architecture, you’ll be mesmerized by Dubrovnik’s Old Town, where classical Gothic, Byzantine, and baroque buildings meld into a wondrous experience of culture and tradition. Walking the streets of this marvelous city is sure to evoke feelings of profound wonder that you will have a hard time finding anywhere else. This breathtaking city is also renowned as the real-life King’s Landing, where the epic TV series Game of Thrones was filmed, making Dubrovnik a beloved destination for fans worldwide.
Real estate in Dubrovnik is pricey, with homes ranging from $150,000 to $1 and 2 million. Fortunately, properties in Dubrovnik are appreciating rapidly, and if you get into the market now, you could make a significant investment.
5. Crete, Greece
Crete, Greece, completes our list of best places to buy a vacation home in the world for US citizens. The reasonable real estate prices, ranging from approximately $270 to $636 per square foot, make it an enticing choice. This means you can find affordable vacation homes without sacrificing location or quality.
Now, let’s discuss what makes Crete such a desirable destination. First, the island’s natural beauty is unparalleled. From its stunning beaches with crystal-clear waters to its rugged mountains and lush countryside, Crete offers diverse landscapes to explore and enjoy. Whether you’re a sun seeker, an avid hiker, or simply enjoy soaking in breathtaking views, Crete has something for everyone.
But it’s not just about the scenery – Crete also has a rich history and cultural heritage that adds depth to the experience of owning a vacation home here. From ancient Minoan ruins to Byzantine churches and Venetian fortresses, the island is steeped in history, waiting to be discovered. Exploring these historical sites is not only educational but also incredibly rewarding, allowing you to connect with the island’s past in a meaningful way.
Of course, let’s not forget about the climate. Crete enjoys a Mediterranean climate, which means mild winters and hot, dry summers. This makes it an ideal destination for year-round enjoyment, whether lounging on the beach in the summer or hiking in the mountains during the cooler months.
Unlocking the Diversity in Vacation Home Buyers
Buying a vacation home for the sake of living in it and enjoying the perks of living in some of the best vacation destinations worldwide is one thing, and investing in real estate abroad is different.
Two types of people are in the market to buy a vacation home. The first type buys the property and is the only one that occupies it. They don’t want strangers in their home, but when/if they decide to sell it, they hope there is equity in the property or at least to break even. If you break even, it’s still a win. The second type of vacation home buyers will use it when they’re around and rent it while it’s vacant to help overcome costs and hopefully even make money from it. Of course, short-term lease agreements have pros and cons, but the latest might be the wiser investment perspective. Some people are looking for unique traveling experiences with non-traditional vacation rentals, so you might want to tap into that.
Also, it is known that not all countries are created equal, and some provide many advantages when it comes to buying, maintaining, and managing real estate. Bahrain, Taiwan, and Ecuador are among the top places worldwide to buy property as an investment. All three of these countries receive a lot of praise from ex-pats for being some of the most friendly countries in the world. The laws are very kind to foreigners, and these countries allow ex-pats to settle in easily. They are known for their ability to communicate with non-native English speakers. Taiwan is known for its high quality of life, and Ecuador for its financial advantages.
Are overseas vacation homes a good investment?
You may wonder whether vacation real estate is a good investment. While there is no simple yes-or-no answer, there are some tricks to ensuring your property appreciates or remains steady in value. First of all, if the property is overseas, you’ll have to look into getting a loan for it. This may be easier than expected if you have the collateral to back up your loan application. You’ll also have to find a way to manage your property while you’re not there.
It’s also a good idea to check real estate prices and price histories in the area surrounding the home you want, much like you would when buying a home in your own country. These can predict with uncanny accuracy what extent your vacation home will hold its value or appreciate. Also, finding a real estate agent specializing in vacation homes will answer any question regarding this type of investment.
How do you maintain a vacation home overseas?
Owning a vacation home overseas is a dream for many. It offers a retreat from the hustle and bustle of daily life, a place to unwind and create lasting memories with loved ones. However, along with the joy of owning a second home comes the responsibility of maintaining it, even when you’re miles away. Here are some tips to help you keep your overseas home in top shape without the stress.
- Find Reliable Local Help: One of the most essential steps in maintaining a vacation home abroad is establishing a network of trustworthy local contacts. This may include a property manager, handyperson, cleaner, and gardener. Having reliable help on the ground will ensure that issues can be addressed promptly, even when you’re not there.
- Regular Inspections: Schedule regular inspections of your property to check for any signs of damage or wear and tear. This can help catch minor problems before they escalate into costly repairs. If you can’t be there in person, consider hiring a property management company to conduct inspections on your behalf.
- Invest in Home Security: Protecting your vacation home from intruders is essential, especially when it’s vacant for extended periods. Install security cameras, motion sensor lights, and a reliable alarm system to deter burglars. You can also ask a neighbor or property manager to monitor the house while you’re away.
- Weather-proofing: Depending on the climate of your vacation destination, weatherproofing your home is crucial to prevent damage from extreme weather conditions. This may include sealing windows and doors, installing storm shutters, and clearing gutters and drains regularly.
- Routine Maintenance: Like your primary residence, your vacation home requires regular maintenance to keep it in good condition. This includes cleaning gutters, servicing HVAC systems, checking for leaks, and inspecting the roof. Create a house maintenance schedule and stick to it to ensure nothing gets overlooked.
- Prepare for Extended Absences: If you plan to be away from your vacation home for an extended period, prepare the property accordingly. Shut off the water supply to prevent burst pipes, unplug electrical appliances, and secure outdoor furniture and valuables.
- Insurance Coverage: Ensure your vacation home is adequately insured against unexpected events such as natural disasters, theft, or liability claims. Review your insurance policy regularly to ensure it provides adequate coverage for your needs.
- Budget Wisely: Owning a vacation home overseas comes with its expenses, from property taxes to maintenance costs. Create a budget considering all associated expenses and set aside a contingency fund for unexpected repairs or emergencies.
- Utilize Technology: Use technology to monitor and control various aspects of your vacation home remotely. Smart home devices such as thermostats, security cameras, and leak detectors can provide peace of mind and help you stay connected to your property from anywhere in the world.
- Enjoy Your Investment: While maintaining a vacation home overseas requires time and effort, enjoy its benefits. Take regular trips to your second home, relax, and recharge in your piece of paradise.
Conclusion
In wrapping up, let’s talk about what owning a vacation home overseas means. It’s not just about beach days or mountain hikes; it’s about finding your piece of paradise and creating lasting memories there. But before you take the leap, it’s essential to consider the practicalities, like local laws and financing options. Once you’ve found your dream getaway, maintaining it from afar becomes a matter of trust and technology. With a reliable local network and some innovative gadgets, you can keep your home-away-from-home in top shape. And when you’re finally there, soaking up the sun or exploring new cultures, leaving the big city behind, that’s when the real magic happens. Owning a vacation home overseas isn’t just about the property; it’s about the experiences and adventures that come with it, making it your slice of paradise.
What do you think the best places to buy a vacation home in the world are? Let us know in the comment section below. We will be happy to hear your thoughts.
Great article!
You could add Montenegro to the list 🙂
Btw you have a typo in the text:
It’s Mediterranean, not Meditaranean 😉
We stand corrected! Thank you for your feedback, and we are glad you enjoy our blog. On our platform, we try to keep our blogs updated, and current with all the real estate trends. On the next blog revision, we will consider adding Montenegro to our list.