4 Things To Consider When Buying a Vacation Home

 In Real Estate Articles

Shopping for a vacation home is an exciting experience. The ability to take vacations in comfort and stay in a place that you own sounds like a vast improvement over hotels and lodges; however, there are several things to think about before solidifying your purchase.

Location
This is one of the most important factors when buying any home, so for a special investment such as a vacation home, it would be wise to consider location as much as possible. Aside from the obvious question regarding whether you like the area enough to visit it continually, gain insight when it comes to the more important questions. If the home is intended to be a weekend family getaway, is it located close enough where reaching your destination isn’t too time consuming? Also, consider extended stays in the area to be sure that you can handle all seasons and weather if you are considering a home to retire to.

Your Budget 

Carefully examine your budget to determine what you can technically afford and what you can really afford. Vacation homes are not worth buying if the purchase stretches your budget and stresses you out. Going to visit the home won’t be enjoyable if it is a constant reminder of your financial troubles. Sometimes it is better to invest in a property that is easier to afford, rather than one with all the bells and whistles. Think about how much time you plan on spending in your vacation home each year. Entering financial hardship for a home that is used less than one month each year does not equal a good investment.

Rental Risks
If you plan on buying a vacation home and renting it out when you aren’t using it, think about the risks involved with a rental property. Sometimes rent expectations will not compare closely enough with reality. The expected rent could be estimated too high, as well as the frequency of renters for the property. Not to mention, there is always the possibility of damages caused by renters, even if you have insurance on the home. Sure, you could sue the renters for damages, but the hassle of going through the courts is not something that everyone is prepared to do. It can be a burden financially, and it can take more time than you’re willing to spend to get payment from responsible parties.

The Future

Many people want vacation homes when they have families, and the children are old enough to enjoy new experiences and travel. It’s a good reason to plan an investment, but think about the long run. The kids will grow up, and along the way, they might develop very active lives that make weekend vacations very difficult to pull off. Think realistically about how often the vacation home is going to be used, and for how many years the current plan will work.

Above all else, take your time in deciding on this kind of investment. Sometimes vacation properties go quickly, but don’t let that be an excuse to make any rash decisions. Plan your purchase after carefully weighing all the pros and cons involved.

Let my team at Keystone Realtors meet all your real estate needs. I have over 14 years of experience in buying and selling in the Santa Clara and San Mateo County areas, specializing in the high-end, luxury market. Visit our website at http://www.paulphangureh.com/ for listings and information. You can contact me at 650-924-2544, or emailat [email protected].