As international real estate markets become more competitive and volatile, global investors are increasingly turning their attention to resort and vacation properties in the United States. These lifestyle-driven investments offer more than just stunning locations and picturesque views—they also provide lucrative rental income opportunities, long-term appreciation, and a hedge against inflation. In this blog, we explore why resort and vacation properties are gaining traction among foreign investors and how to make the most of these investments.
Why Resort & Vacation Properties?
1. High Rental Demand in Tourist Hotspots
Vacation rentals have seen explosive growth due to platforms like Airbnb, Vrbo, and Booking.com. Properties in top U.S. destinations such as Florida, California, Colorado, and Hawaii consistently attract year-round tourists, ensuring strong occupancy rates and premium rental income. For international investors, this translates into a steady revenue stream without the need for long-term tenant management.
2. Lifestyle and Hybrid Use
Many foreign investors see vacation homes as hybrid investments—properties they can enjoy themselves during off-peak seasons while renting them out during peak tourist times. This dual-purpose use not only maximizes return on investment but also offers personal value and lifestyle enrichment.
3. Appreciation Potential in Desirable Locations
Vacation and resort markets often experience higher-than-average appreciation, particularly in regions with limited supply and consistent tourist demand. Beach towns, mountain resorts, and scenic lakefronts continue to attract buyers and renters alike, especially with the rise of remote work.
4. Diversification Across Currencies and Geographies
For global investors, holding U.S. resort properties adds diversification to their portfolio—both geographically and financially. With the U.S. dollar being a relatively stable currency, these investments act as a hedge against volatility in other regions.
Key Considerations for Foreign Investors
Local Regulations & Zoning Laws
Many U.S. cities and counties have specific regulations around short-term rentals. Understanding these laws—including licensing requirements, HOA restrictions, and occupancy rules—is essential before purchasing.
Property Management
Managing a vacation rental remotely can be challenging. Partnering with a local property management company can ease the burden by handling guest check-ins, maintenance, and bookings.
Tax Implications
Foreign investors must navigate U.S. tax laws, including income tax on rental earnings and capital gains tax upon sale. Consulting a tax advisor familiar with international property ownership is highly recommended.
Financing Options
While financing can be complex for foreign investors, specialized lenders like Dowise simplify the process with no U.S. credit score required and up to 75% LTV for qualified buyers.
Top U.S. Resort Markets to Watch
- Orlando, Florida – With world-renowned theme parks and year-round sunshine, Orlando is a top choice for vacation rental investors.
- Aspen, Colorado – A luxury destination for ski enthusiasts and summer vacationers, Aspen offers high rental income potential.
- Maui, Hawaii – Known for its breathtaking beaches and tropical lifestyle, Maui properties attract global investors seeking long-term value.
- Lake Tahoe, California/Nevada – A four-season market with appeal for both summer boating and winter skiing, Tahoe combines charm with strong ROI.
Real Case: How a Foreign Investor Succeeded with a Vacation Property
A Canadian investor partnered with Dowise to purchase a lakeside vacation rental in Lake Tahoe. With no U.S. credit score, the investor secured financing within days through Dowise’s online application process. The property was listed on Airbnb and began generating income within the first month. With consistent 80%+ occupancy and seasonal rate premiums, the investor achieved a 12.5% annual return in the first year.
Conclusion
Resort and vacation properties offer global investors a powerful combination of income, appreciation, and lifestyle benefits. With the right guidance and financing partner, these properties can become cornerstone assets in any international portfolio.
Ready to explore the U.S. vacation property market? Dowise provides tailored financing solutions for foreign nationals investing in the U.S.—no U.S. credit required, no hassle. Start your journey today.