Buying a vacation property is everyone’s dream. Just imagine how much fun you’d have lying in the Sun and enjoying a warm summer breeze! Unfortunately, finding the right property is much trickier than you might think. Even if you’re acquainted with the local market, you can make basic blunders that can ruin your investment.
“Most people get caught in esthetics when buying a vacation home,” according to Sun Realty NC, an Outer Banks rentals company. As a result, they tend to overlook obvious property flaws. Given the importance of the subject matter, we decided to create an article listing 7 tips for buying a vacation property. Enjoy!
Buy according to your budget
Let’s be honest. Buying a vacation property is a vanity investment. It’s a luxury from which you’ll never get the full value. Because of that, you should never go overboard with your purchase.
Even if you notice an undervalued home that is slightly above your budget, you should stick with a cheaper alternative. Keep in mind that the US economy has been extremely volatile in the last 20 years, so you probably should stay away from a major debt.
Don’t buy land
Another common miscalculation is buying an empty property instead of a finished house. You might think this will help you reduce the total expenses, but in reality, it’s usually the opposite.
When it comes to coastal homes, in particular, you have to deal with various regulations. Building a house near the shore usually requires special permits. The future owner should also consider local associations that make things even trickier.
Whatever the case, you’ll likely go above the budget. This might stall the building works, sometimes even leading to homeowners completely abandoning the project.
Find a reliable local agency
Most importantly, you should always hire a reputable local real estate company. These guys know everything about the area, including future public projects, the condition of the roads, and potential environmental hazards. Although they usually try to oversell, the local agents can point you in the right direction.
Among others, local businesses can help you out with taxes and finding the cheapest financing option. They can point you in the right direction when it comes to administrative work. This will make it easier to calculate the expenses and how much time you’ll need to move in.
Consider its rental value
In most cases, the price of a house reflects its real market value. Still, customers’ preferences can vary significantly, and some people are willing to overpay for certain features.
For example, you might buy a property that caters to your specific needs, even if everyone else perceives it as a bad investment. Being too far away from the beach might work for you, but other people will consider it a nuisance.
This can cause lots of issues if you, one day, decide to rent or sell. Even if you see it as a fantastic investment, it might be hard to get back the full value. So, when making a purchase, always think about the home’s future value and whether you can find a buyer for it.
Timeshares sound amazing on the surface. They allow you to buy a vacation property without breaking the bank. With this concept, you can finally own a beautiful house on the seaside, and you no longer have to book expensive hotels each year.
Unfortunately, there are simply too many scams involving timeshares. This has become a public secret, and you’ve probably watched TV shows and movies that mock the concept. What’s worse, you can’t resell your timeshare as easily as you could a normal vacation property.
Always buy in the US
Although there are lots of beautiful vacation spots in the US, many people prefer the idea of buying a property abroad.
Unfortunately, this kind of venture is extremely risky. This is especially true if you decide to purchase a property in an impoverished region. In some countries, your house can be nationalized overnight by a simple decree. You also have to think about political and economic instability that can have a negative impact on property value.
While you can still buy a house abroad, you should get acquainted with the situation in the country before making any moves.
A portion of people who buy vacation homes decides to stay there forever. Unfortunately, things can get dicey depending on the season and environmental conditions.
Smaller communities might have issues with sewage, electricity, and roads. During the winter, it might be tricky for food suppliers to deliver groceries to local stores. And if you encounter rough weather, all these issues will be multiplied.
So, if you wish to use your vacation home as a permanent residence, you should consider its functionality during the off-season. Furthermore, if you’re still working, you should check the availability of winter and summer jobs.