Things to Take Note of While Investing in a Vacation Home

Oct 10, 2016

There’s no better feeling than owning a private pad where you can simply getaway to for a much needed break while you wave goodbye to life’s problems. We all dream about having that perfect vacation home where you can just while away your time and enjoy the peacefulness of exotic locations. Yes, having your own vacation home does have its perks!

So after years and years of struggle, you are finally quite capable of owning an eye catching beach home yourself. And even though you have already set your eyes on the ideal one for quite some time now, just slow down a bit.

Here are a few factors that you need to keep in mind before investing your hard earned money into a dream home that is still unknown to you.

1. How many times will you frequent the place?

You’re all hyped about the fact that it’s your dream vacation home; everything looks too good to be true so without wasting any time you strike a good bargain for the home and everything’s settled. All of this hard work will go for a toss, if you never show up after a one-time vacation here. When choosing a place, make sure you want to return to it for vacations so that you are able to get your money’s worth rather than simply letting it stay locked and unoccupied.

2. Keep an eye on your budget

Under no circumstance should you go overboard with your finances. When calculating the cost of a home, consider the percentage of down payment, the monthly amount you will have to pay on the mortgage, insurance as well as the charges for the home’s upkeep that you will have to spend on. Be sure to understand, the entire cost involved and decide accordingly. It does not feel like a vacation, if you are bankrupt in the bargain right?

3. Spend a little time there

Once you make a decision on buying a vacation home, you don’t really have the option to change the location or vicinity of the locality you reside in, even though it’s a temporary stay. So spend some quality time there before you make a decision. Check out the facilities and amenities available, what are the risks involved, the distance from your own residence and understand how things go about. Don’t even think about purchasing it unless you have taken these aspects into account.

4. Who will take care of it once you’re gone?

An empty home is a direct invitation for thieves and other kinds of burglars. So also, after your arrival, you won’t feel like stepping into a vacation home that is dusty and grimy which forces you to spend a day on cleaning it up. It’s a house not a hotel so make sure someone is there to keep a watch once in a while, collect mail and dust it up while you’re away. Install a security system or ask your neighbors to help you out a little on this.

5. Are the day-to-day risks in check?

Even the safest and quietest of places will have bad days when it has to tackle pesky insects, natural calamities or an unforeseen incident. Try as we might, risks are part and parcel of life. This is why, it is essential that you try to minimize the occurrence of these. So even if it is annoying bugs and creepy crawlies or floods and hurricanes, consider them seriously and take necessary precautions. The worst could be buying a home where the crime rate is at the highest peak. (Yikes!)

6. Thought about renting it out?

Even though your idea of a home away from home may mean no connectivity, peace and tranquility, it may not fit into the idea of the people who want to rent your vacation home. Renting your home can be an easy way to subsidize the mortgage but you need to put in time and effort to search for the right renters. Once you are a landlord, make sure you are aware of things like insurance, taxes and the hassles of finding a tenant and collecting fees with the renter from the beginning itself.

7. Collaborate with an agent

When you find a home that is the epitome of relaxation and rejuvenation, everything about it seems picturesque. You find everything on the surface impeccable except did you know about the back road that leads to the market place is closed six months a year? Of course, you wouldn’t know. It’s in such situations; a real estate agent comes in handy. They are able to solve problems as well as let you know about terms and conditions, hidden bonds and community events that you encounter, as a house owner.

8. What is your ultimate goal?

Ask yourself this last question. For what do you want the vacation home- for a place to retire, as an investment or a fun vacation refuge? There’s no harm in opting for one or all three aspects. Accordingly check out the location, size and features of the home you shortlist and make a budget on the same.

So you see, there are quite a few factors that need to be taken into consideration. A vacation home may be your secret hideaway from the world’s drama, a fun-place where you can make tons of memories to look back on years down the lane but it is also a solid investment in which you need to devote time as well as money into.

Don’t let the excitement of house hunting get the better of you. Think wisely; plan accordingly, keeping all kinds of risks and possibilities in mind and only when all these deeds are accomplished, relax, let your hair down and enjoy uninhibitedly!