Buying a vacation home can make things easier if you visit an area frequently, and it also can turn out to be a good investment. According to the National Association of Realtors distressed properties made up 45% of vacation home sales last year and vacation home sales surged, making up 21% of all home sales last year, a 57% increase from 2013.
A vacation home is a great opportunity to spend time away from the busyness of everyday life, or it can be a great source of income if it is rented. However, there are some things to consider before buying a vacation home.
Can you afford it?
The number one consideration when buying a vacation home is whether you can afford it. You should be able to pay cash for the home or afford the second payment comfortably without having to cut into retirement savings. You also have to take into account the ongoing expenses for things like upkeep, utilities, taxes and any homeowners association fees.
Location – How much will you use it?
Buying a vacation home may seem like a good idea, but if you won’t use it often, you may want to consider renting it out at certain times of the year to get your money’s worth. Too often, people want to buy a vacation home in an exotic location far from where they are, and it just isn’t worth the investment. For example, a vacation home in Big Bear is a great option for those who love the outdoors and live in Southern California. Think about what you love doing, and find a vacation home that would work in an area that’s not too far away.
Condition
You probably aren’t going to want your vacation home to be a project that you have to spend lots of time and money on to make it livable. That means you are going to want to buy a vacation home that is in move-in condition. You also should see in-person any vacation property you are thinking about buying to ensure the condition is as advertised. Often times, it is worth the money to build your own vacation home to get the exact look and materials you want.
Type of home
Vacation homes can come in many types depending on where you are buying one and the type of vacation area it’s in. For example, if your vacation home is in a mountain community, you might want to look into buying or building a log home, say the experts at Pioneer Log Homes of BC. Most log homes are built in a sustainable fashion, and you will have many options to customize the size to fit your needs.
What will happen when you aren’t there?
When you own a vacation home, you have to give strong consideration to what will happen when you aren’t using it. You could rent it out or hire a caretaker to watch over it. At a minimum, you probably need a security system.
Buying a vacation home is a big decision, and it’s important to consider all of your options first. Building or buying a second home is often a great investment that can be used in many ways for years to come.
If you’re interested in learning more about vacation homes in the Southern California area, reach out to a First Team specialist. With agents and offices from the beaches to inland mountain areas, we’ve got your vacation destination covered.
Email us at clientservices@firstteam.com
Call us at 888-870-1142
