Selecting a second home deserves almost the same amount of thought and careful consideration as does your primary residence. After all, you want to ensure a future of happy vacations and, if you’re like most people, prefer your investment to be one that appreciates over time. Give consideration to the following six key variables when selecting your vacation home.
1. Lifestyle. Most people purchase vacation homes to relax, entertain family and guests, and recreate. Almost any vacation property offers relaxation and entertainment, but recreation varies from place to place.
Consider whether you enjoy skiing, fishing, boating, snorkeling, surfing, golf, tennis, hiking, mountain biking or even sunbathing. Then seek properties at a destination that caters to your recreational preferences.
2. Objectives. What is your primary objective with this vacation home? Do you want to own a vacation home you’ll use frequently or is it mainly a real estate investment that you’ll hold for a while and then resell hopefully for profit?
Is it a place to bring the kids on holidays or is it a future retirement home? Is it a convenient location from which you can mix business and pleasure? Is it a place for the entire family or somewhere you can get together with friends for fishing or skiing?
3. Travel Distance. The amount of time and money spent traveling to and from your vacation property is an influential factor in determining how often you’ll visit. The ideal travel distance is different for every buyer, but before you purchase, you must decide how much time and money you’re willing and able to invest each time you take a trip to your vacation property.
4. Location. It is crucial to learn anything and everything about the city, town, and community of your potential second home. What are the prime and low seasons? What is the year round climate? How many of your neighbors are full-time residents? Is the area a prime tourist destination?
Is the community safe and kid friendly? Is the local lifestyle – dining, shopping, entertainment, and recreation – affordable? The answers to these questions and others will help you assess whether a particular vacation property will support your desired vacation lifestyle.
5. Costs. In addition to the price of your vacation property, many other expenses accompany the rights to ownership. Taxes, insurance, utilities, homeowner association fees, landscaping, repairs, furnishings and property management can add to your monthly payments. Be sure to research all the costs associated with your vacation property before signing on the dotted line.
6. Responsibilities. What do you need to do to take care of your vacation home each year? Mountain homes are subject to frozen and bursting pipes. Beach homes can encounter damaging tropical storms. How often does your roof need to be replaced or the house need to be painted?
Maintaining and managing your dream home can be a second job. One option is to hire a full-time property management company. Another is to consider a private residence club or fractional ownership in which an on-site professional management company takes care of all maintenance issues.
Searching for and purchasing a vacation home can be a demanding process. Giving careful thought to the six key considerations above in selecting a vacation property will help ensure that your vacation property fits your needs and resources.
Condo Hotel Center can provide educational guidance and services to simplify the process. Tell us what you’re looking for and we’ll be glad to make some property recommendations.
Contact us at info@CondoHotelCenter.com or (954) 450-1929.