Things to Know Before Buying a Vacation Home
Many people buy second homes either to spend their holidays, or to rent them out, or both. Most people do wish to spend their holidays in their vacation homes, especially during the summer. The rest of the year they will gladly rent them out. However, it should be taken into consideration before buying your home that it is not possible to recoup your investing my simply renting out your property. So be prepared for all management costs that come with purchasing a vacation home.
To make the decision easier for you, we are providing you with the four most important things which you should consider before buying a vacation home.
So the location of your vacation home plays a great role in determining the amount of time you will be spending there. If it’s an exotic location that you won’t get tired of seeing, then simply go ahead. This includes beachside vacation homes, mountain cabins and other scenic locations and resorts. You will enjoy your holidays every single time you visit your vacation home. If it’s an area that isn’t worth seeing twice, then it’s wiser to choose a better location for your vacation home. Plus, popular areas and nice neighborhoods always rise in property value, making your second home a smart investment.
Even if you aren’t planning to spend your holidays there and want to rent it out, do consider the location as it is one of the most important factors that people consider when renting properties (both short and long term).
The next thing you need to make sure is that your vacation home is within driving distance. This will make it easier for you to make a quick getaway on weekends, otherwise you will have to wait for your annual work leave or other holidays to visit your vacation home. For house maintenance and other such purposes, it makes sense that you buy a vacation home close by.
The Costs & Affordability
Vacation homes normally don’t come cheap, plus they require a lot of maintenance as you don’t spend much of your time there – possibly a month or two at max in a year. Consider hiring a property manager to look after your vacation home; you don’t want any water leaks or HVAC problems when you visit in your holidays.
Additionally, if you wish to rent it out for the rest of the year, you will have to take care of cleaning and repair between tenants, as well as any additional costs incurred.
Time Shares & Joint Ownership
Time shares consist of two forms of vacation ownership, comprising of ownerships with and without deeds. Sometimes people acquire deeded ownership of a property for a specific time of the year, while at others people purchase a resort or vacation home without holding the deed in their name. Time shares are generally bought and sold like other kinds of personal property, but ironically sellers get comparatively lesser than fair price. Thus, make sure that you go over your time share contracts carefully to guarantee a lucrative investment.
So whenever you decide to purchase a second/vacation home, make sure that you consider the above factors before making the final decision!