So you’ve decided to buy a vacation house, but where do you start looking for one that meets all of your demands? There are many factors to consider while looking for the ideal home away from home, from new appliances and community amenities to location and solitude. For more information on what to consider while buying a holiday house, we prepared a checklist for you!
1. Determine the Type of Property YOU Want
It can be difficult to sort through all of the available luxury mountain homes, mountain cottages, high-rise condos, and lake villas. As a result, when searching for vacation houses, it’s crucial to focus on your lifestyle and what you enjoy. Avoid luxurious condos in the city if you prefer a cabin in the woods.
Here is a quick checklist of things you need to consider:
✓ Do you have kids?
✓ Do you have pets?
✓ How many rooms do you need for your family?
✓ How often will you visit?
✓ What is your preferred season during your vacation?
✓ Do you have the means to travel to your vacation home?
✓ What kind of activities do you want to do when on vacation?
✓ Will you need a parking space?
✓ What are your preferences in terms of style, and amenities?
✓ Will this be a retirement home?
✓ Are you looking for a Legacy property for your family?
2. Figure Out Your Budget
Vacation houses are expensive! Many purchasers are unaware that second-home mortgage rates are higher and that the requirements for financing a second house differ from those for a primary dwelling.
What you should know about second mortgages
A second residence might be a wise investment. It can not only provide you with a holiday spot and help you avoid costly rentals, but it can also create cash flow.
Your vacation house could theoretically pay for itself if you rent it out and utilize the money to pay the mortgage.
But before you jump in, make sure you know the laws and requirements for a second mortgage. They’re not the same as the mortgage on your primary residence.
Also, if you are thinking of renting the second-home out when you are not there, be sure to check the local laws to see if your property is eligible for that.
3. Evaluate the Location
Not just in terms of real estate market value, but also in terms of selecting which facilities are most essential to you, finding a decent location for your vacation home should be a top priority.
Do you want to be able to walk to the lake from your home?
Would you like to be near golf courses or ski resorts?
Do you want to go out for some nightlife, dining, shopping, or entertainment?
Consider which places would provide you with the ideal holiday experience, and then search for properties in those areas.
Besides the fun activities you can do, you also need to consider the facilities available near your vacation home.
Are there any grocery stores?
Are medical facilities available?
Is the community friendly?
Is the area safe and secured from any form of threats?
The Pros and Cons of a Vacation Home
Here are some of the most typical advantages and disadvantages of purchasing a vacation property that might have a significant impact on your life.
Pros of purchasing a vacation home:
It’s an investment, and like your principal residence, it’ll probably appreciate in value (especially if you settle near popular areas like a beach or mountains).
This property will allow you to save money on a place to stay and stay for longer than you would in a holiday rental, enhancing your own vacation experience. It will also provide you with a location to invite loved ones for some R&R!
Make money by renting out this property during the months you aren’t there or even to other vacationers.
If you plan to buy a vacation home in Colorado, get help from a local commercial real estate expert to give you the best properties to choose from.
Cons of purchasing a vacation home:
Vacation homes are not cheap! You’ll have to pay a new mortgage, as well as property taxes, insurance, and utilities. These fees may imply less money saved for other goals, such as a college fund or retirement.
When you’re not there, you must consider the maintenance and security requirements. Even with today’s technology, you can watch your property from afar, but what will you do in the event of an emergency if your vacation house is far distant from your regular residence?
Will you become bored with the scenery? This is why it’s critical to avoid making an emotional judgment when buying a vacation home. Do you think you’ll be wishing for a change of scenery in a few years? Will you refrain from taking vacations somewhere else?
Still hesitant? Book a consultation today with a commercial real estate expert to determine the steps you need to take to decide!