7 Important Factors to Consider while Buying a Vacation Home
Owning a vacation home sounds great, and it can be, and most of the times, it’s also a good long-term investment indeed. But jumping in blindly may not be a wise move. Here are a few factors which you should consider first before grabbing a vacation home.
1. Take a Feel of the Area
It’s advisable to not even think of buying a property at a vacation spot, until you visit the area a few times. It may sound basic but it’s better to ensure you just love the ski resort, beach town or country ranch before committing to purchasing there, as you will spend a great amount of your spare time there in the future. Unlike rental villa or hotels, a vacation home doesn’t give you the freedom of changing destinations frequently if you are tired of the scenery.
2. Know the Total Price
Similar to your primary home, you should understand all the costs of your vacation home at Islamorada for example including property taxes, costs of insurance and all other carrying costs. Keep in mind that even though you won’t be there always, you will still be charged for electricity, water, landscaping, gas, trash removal and other maintenance services. Don’t forget to include all these overhead expenses in your budget, since your dream of an ‘ideal vacation home’ can be ruined by being in over your head financially.
3. Who will Take Care of the Home while You are Absent?
In addition to other costs, there is one more cost you should think of, which is specific to vacation homes – it’s management costs. If you are planning to visit your vacation home occasionally and are considering renters too in your absence, don’t forget to find a local property manager that will look after your home. You will have to pay extra for this; however, it will be a great peace of mind that there would be someone to take care of the leaky roof or frozen pipes, if they remain unnoticed for a long time. Take help of the very helpful team of Blue 9 Realty to solve all your problems regarding your vacation home.
4. Safety should be Your Prime Concern
Get information of crime in the area, particularly if you will leave your home uninhabited for long periods of time. A crime like a break in can be a cause of a great loss and frustration when you are away. So, keep in mind to include the cost of safety arrangements to your budget.
5. Each and Every Day is not a Holiday
Experienced real estate brokers like John Gallant say that the whole first weekend of the season is an unrelenting (and very un-peaceful) spree of repair and maintenance of vacation homes. Actually, a great amount of your ‘holiday’ time will be spent at the nearby home improvement shop. Remember that it’s also your house and requires just as much upkeep year round as your primary residence needs.
6. You will Need an Income
A smart investment in a vacation home is one that includes rental potential into the calculation. If you can do it correctly, many of your expenses can be counterbalanced by letting renters in your absence. And from the point of view of long-term investment, rental income may enable you to develop equity and ultimately pay the property off. Check neighboring vacation homes, discuss with local agents as well as vacation rental companies and search online to find what’s renting (and the rent). Also remember to research about occupancy rates; how often the properties are rented is also important to know.
7. Vacation could be a Struggle
Several popular holiday destinations are places that have a ‘high’ season. For example, in Islamorada, Florida, winter is a high season and in most ski resorts, visits skyrocket from December to February. This sort of seasonality becomes a struggle when the demand for your vacation home for renting clashes with the timeframe you intend to use it. Therefore if you want to maximize the rental income from your vacation home, be ready to sacrifice some of that peak-season vacation yourself.
Considering all these factors and then buying a vacation home will be a great experience for you for years to come.