Having the money to invest in a second home allows you to create a personalized oasis at your favorite vacation destination. Purchasing a vacation home differs from the purchase of a primary residence in many different ways.
In order to ensure that you are buying the right vacation home to meet your long-term needs, here are three tips that you should keep in mind throughout the house-hunting process.
1. Consider each home's proximity to amenities.
Most people are familiar with the expression that when it comes to real estate, location is everything. This is especially true when you are purchasing a vacation home. You want your vacation home to be located in an area that is in close proximity to the amenities you enjoy most.
It may be worth spending a little extra to get a home that overlooks the ocean or lake, and you should ensure that you can easily access basic services like grocery stores, restaurants, and entertainment venues with ease. Taking a home's proximity to amenities into account when searching for a vacation property allows you to invest in a second home that you will find convenient and enjoyable well into the future.
2. Keep rental prices in mind.
Before you make the choice to purchase a vacation home, you should do some research on rental prices in the area. Since you won't be spending every day living in your second home, you may want to rent the property out to other vacationers to help offset the cost of your mortgage.
You should research rental rates during both peak and off-season months to help you determine which vacation property can also be rented out in the future.
3. Factor in the cost of upkeep.
Maintaining a vacation property often requires investing in the services of a property management company, especially if your primary residence is located far away from your vacation property. A property management company will be able to inspect your vacation property on a regular basis to check for maintenance issues, and they will be able to keep your property's exterior freshly manicured.
Having a local set of eyes on your property can be beneficial when you live too far away to provide for the regular maintenance of your vacation property. Be sure that you are factoring in the cost of property management services into the purchase price of your vacation home.
Finding the perfect vacation property is easy when you remember to factor in location, rental rates, and upkeep before making your final purchase.