04 Aug Buying an Investment Property: Vacation Home Edition
How many times have you been to a gorgeous vacation destination and thought, “yes, I could live here?” Well, maybe this is the year that you do it! Yep, buy a vacation home. What do you think? If you’re considering it, this post is for you because it’s not quite the same as buying your primary home. There are some tips and advice I have for you that will help you make an informed, wise – and really exciting – decision.
Picking the Location
When picking the perfect location to buy a vacation home, there are a few considerations. Choose a location that you’re familiar with that really resonated with you and your family. Make sure it’s a place you want to keep visiting again and again. Visit multiple times with the eyes and ears of owning a home there. Remember, owning a vacation home is different than a primary residence, so maybe you’d consider a lower maintenance home like a condo or townhome.
What’s your goal?
Before beginning the process of buying a vacation home, you need to know what you and your family’s goal is with the home. Are you planning to keep it for yourselves and sell when your family’s needs change. For example, buying a condo near Disney World may be less usable when your kids get older. Or perhaps you want a property in a hot short-term rental market so that you can make money on it when you’re not there. Do you want it to be a property you keep in the family and pass on to your children?
What will it cost?
Once you’ve decided on a location, I can help you determine the cost of ownership in that area so you can have a solid understanding of how the vacation home fits into your budget. We will consider the costs of financing, costs of owning the home, the tax and maintenance implications; even the costs to travel to and from you vacation home. Remember, the mortgage for a vacation home will have different terms and requirements so let’s figure it all out so you have no surprises.
Assemble a good team
Finally, you’ll want to assemble a trustworthy team that includes a local real estate agent, lender (if needed), and a possibly a property management firm to help be your eyes and ears when you’re not there. Make sure that you are also getting good legal and financial advice on how to structure the purchase, especially if it is in a foreign country.
In addition to being a Realtor®, I am a real estate attorney, so please reach out if you would like my advice on your purchase or help finding a Realtor® in the area where you are considering buying your vacation home.
Buying a vacation property can be an exciting and rewarding experience, as well as a great opportunity for income and creating a legacy. These steps will get you started in the right direction; however, please reach out and I can help you through the process.