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Iceland and the Fareoe Islands in two weeks

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Hello Fodorites! I am back and planning a trip to Iceland.

I KNOW, you want details on the itinerary, dates, budget, interests, etc. but I can only give you so much at this time. So really if you can provide me with some insight on my plans below, I hope to have a real itinerary for you soon to give me feedback on.

Here's the plan so far:

There are four of us, in our mid-twenties travelling from Canada to Iceland for two weeks. At this point we are thinking Mid-July to Mid-August, give or take a few days. We are young and fit so not afraid of day hikes and excursions, and generally have an interest in anything Iceland has to offer so any ideas are welcome. As a group our interests include: photography (scenic views and excursions are a must), folklore, good food and drink, pubs full of culture and friendly people, northern lights, volcanoes..a plethora of interests really.

No official budget yet, but at this point the gestimate is $2,500 - $3,500 each - any insight on where we can cut costs/where we should invest more would be great. Is this budget even doable?

I used VRBO for my last trip and had a good experience so I will be looking into apartments again in Reykjavik (and other major cities) to stay for at least a few days. We also plan to rent a car to view the sites in the area. My main questions are as follows:

- What are the best cities to stay in when renting a car and travelling around the country.
- The Faroe islands are just an idea at this point. Is it doable to see Iceland as well as the island in two weeks, without having to stay in a new place every day. We'd like some down time to explore certain areas longer.
- Best tourist locations vs. which ones to avoid
- Local spots that most tourists don't know of that would be worth while to visit.

Thank you in advanced!

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