Planning to buy a vacation house? MAKE SURE you read through this guide first!
Because who wouldn’t love to OWN a home in a place where they can commune with nature, feel the fresh salty sea breezes, or view the majestic hilly scenes, right?
So, owning your personal vacation home may be one of your big fantasies too…
Or, perhaps, you’ve already decided to buy one for yourself?
Have you?
Well, if you have… Stop!
Before you sign that dotted line and have a vacation house transferred in your name there are things to consider.
Buying a vacation house is NOT only about sensations and aesthetics, there is money involved…
Just as you would do with any real estate deal there are some serious ground realities to look at before you pick your dream vacation house.
The Four Things to Consider!
So, below are the 4 main things to consider before buying a vacation house.
Read and reflect…
1) Ahem… Can You Afford It?
Well, believe it or not, just last year the real estate industry saw a giant leap of 44% growth in the sales of vacation homes across the US.
With that, one thing is clear:
The demand for vacation properties is super good and the market is on the rise.
But can you afford to buy a vacation house at all, with the demand at an all-time high already?
Before you make a decision become familiar with all the costs that would come tagged along with your vacation house.
Apart from the purchase price, there are various others costs to deal with, like…
– Taxes
– HOA fees
– Insurance
– Utilities
– Security costs
– Maintenance
– Rental Management
Also, including additional props like jet skis, motorboats and other fun stuff necessary for a vacation will contribute to the costs.
So, will you be able to afford them? Think about it. Consider providing your guests a source for renting those items if they desire.
Talk to a licensed real estate expert and consult their expertise to make up your budget if you want to avoid buyer’s remorse later on.
2) Let’s Talk Rentals…
If you’re looking to buy a vacation house from the investment perspective, check if there is potential for rental income at all?
Get familiar with the prevalent rent rates in the market and see if they’ll cover your costs…
For financing tell your lender that you aim at renting it out so their plan is in line with the laws for rental vacation houses and not ordinary real estate.
Also, many communities have restrictions on renting altogether so make sure that’s not the case with properties you select…
OR your investment will go straight to waste!
3) The Location!
This is absolutely important to consider.
Do you want to spend your vacations in a quiet, serene place or you’d like to spend time in the middle of a vibrant city?
It all depends on your personal choice. But make that choice consciously.
Also, consider how far or close do you want your second home to be?
Should it be just a quick drive from your primary residence or you’d like to take a long drive (and bear with traffic jams) to get to the location?
Put these questions to yourself even before you start looking for your dream vacation house!
4) Who Will Watch In Your Absence?
Well, exactly who is going to look after your property when you’re away?
And… You ARE going to be away for most of the year since it’s your vacation house, not your permanent residence.
Leaving your home away from home unchecked for long periods will not only up the risk for theft or vandalism but any unnoticed leakages or frozen pipes can also seriously damage the property.
Plus, if you intend to rent out to vacationers the maintenance of creature comforts (food, TV, medicine, etc.) will be necessary as well.
So, for this purpose you’ll need to hire a property manager for your property’s upkeep – and for your peace of mind!
Now Is the Time to Invest!
Now, once you’ve given enough thought to the four points above and decided on a clear and realistic plan for each of them, then…
It’s time to invest!
As mentioned before, people are looking for vacation homes right now more than ever before and the market is seeing a boom.
Sit down with a property expert, analyze your objectives, double-check your plan…
… and… you’re ready to INVEST!