Just as Marylou put it: Unquestionably, Saratoga Springs is “the summer place to be.” And now there’s actual data to back her up. According to a new study from financial services research firm GOBankingRates, Saratoga Springs is one of top 50 locations in the United States where it’s best to invest in a vacation home.
To determine Saratoga’s summer-slanted standing, GOBankingRates first singled out the top vacation destinations in all 50 states using data from TripAdvisor, then cross-listed them with the median home value via Zillow and median rent for each location (the latter was calculated using data from Zillow, Trulia and RentJungle). For those of you keeping track, Saratoga’s median home value is currently $329,700. The firm then calculated how many years it would take, earning that median rent as income, to pay off the value of the property by dividing the median home value by its annual rental income.
The firm also calculated the rental yield (i.e. how much cash the vacation house would produce each year as a percentage of the house’s overall value) by doing the inverse, dividing annual rental income by median home value, with the highest percentages being the best. In Saratoga’s case, the rental yield turned out to be a favorable 8.11 percent.
Now, if you’re champing at the bit for a quick return-on-investment, it might be worth taking a few steps back: Per GOBankingRates, it’ll take an average of about 12 years for rental income to pay off a home purchase in the Saratoga area. But, hey, as they say: If you’ve got it, you might as well spend it.
The list of 50 destinations include a diverse range of locations across the US. Nearby spots include Stowe, VT (3 hours from Saratoga) and Mystic, CT (3.5 hours from Saratoga). Saratoga also shared the list with big-time resort towns such as Hilton Head, SC; Honolulu, HI; Nashville; and Las Vegas.