Purchasing a second home for vacation use has the potential to be a great experience as well as a solid investment for your financial future. Unfortunately, doing so can also be financially risky, if the home selected is not a good choice or the decision was poorly thought out. If you have decided that the time has come to search for a second home to use as your vacation getaway, these three tips can help ensure that the purchase you ultimately make will not be one that you will later regret.
1. Avoid location mistakes
The location of the vacation property is critical for two reasons. First, a vacation home that requires air travel or more than a few hours in the car to reach will be used less frequently than one that is nearer. Instead of spending lazy weekends enjoying it throughout the year, you may only be able to schedule visits once or twice each year. In addition, a distant location can make it more difficult for you to manage any maintenance and repair issues that may arise.
An even more serious location issue is choosing one that will limit the possibility of earning income as a vacation rental. Second-home buyers who want the property to earn sufficient income to pay for taxes, insurance, maintenance, and utilities, plus some additional profit will be more likely to do so by choosing a location where vacation rentals are in demand due to a strong flow of tourism to the area.
2. Buy within your budget
Crunching the numbers carefully before taking on the expense of a vacation home is crucial to enjoying a good experience. In addition to the cost of the purchase, it is important to budget carefully for all the associated costs of owning a second home, including taxes, HOA fees, insurance, repairs, necessary renovations and updates, and ongoing maintenance.
3. Hire a local real estate professional
Second-home buyers must also seek out expert advice, especially when purchasing in an area where they have little knowledge of the real estate market. The best way to do this is to utilize the services of a real estate professional who offers experience in listing and selling vacation homes in the area where the purchase will be made.
In addition to enjoying the benefit of local market knowledge, second-home buyers can opt to have their local real estate agent provide property management services for the home in their absence, including the management of it as a vacation rental. To learn more, contact a company like Summit Real Estate today.Share