A vacation home can be a great way to treat yourself. Alternatively, it could be a fun investment opportunity. Whatever reason you decide to buy a vacation home, make sure that you’ve made a few of these considerations first.
Do you know the area well?
Most people buy a vacation home in an area that they are already fond of. You can then be certain that you won’t get bored of this location on return visits. If you’re thinking of buying a home somewhere unfamiliar, consider spending a couple weeks in this location to get a feel for it.
How easy is it to get to?
Having to take multiple flights and a long drive to get to your vacation home could eventually grow tiring. Having to do a lot of travel to get there could also end up quite expensive. This is why it’s worth choosing a location that is relatively easy to get to. Somewhere that is a couple hours’ drive away or a short flight away is ideal. Somewhere that is on the opposite side of the world is not particularly ideal (unless you’re able to stay there for months at a time).
What condition is the property in?
As with buying a home, you need to be sure that your vacation property is in good condition so that you’re not constantly paying for repairs. Consider hiring a professional home inspector to take a look at a property before you buy – you can then get a better understanding of the type of repairs you’re likely to face in the future.
Are you going to rent it out?
When you’re not using your holiday home, you could rent it out to guests. This could allow you to turn your holiday home into an extra source of income (ideally you should be able to cover any mortgage and make a profit on top). Sites like AirBnB are great for marketing your property so that you can attract guests. There are AirBnB rental management companies that can help you to look after your property and keep guests coming in.
Can you realistically afford it?
A vacation home needs to be something that you can comfortably afford on top of all your other bills. Not everyone can afford to take out a mortgage on two properties – especially if you’re not renting any of them out. Make sure that budget ahead to see if your plans are realistic. Prices of vacation homes can vary depending on the location and the type of property. If you can’t afford a villa in a prime location by the sea, consider whether an apartment without a sea view could be a better option. Make sure to also shop around for mortgages to get the best rates (you’ll need to take out a specialist vacation home mortgage if you plan on renting it out).