You’ve decided to invest in a vacation home, either for yourself or to rent to tourists. However, before you pay the price and sign the deed, there are a few things you might want to consider first.
Here are a few essential things to think about before you buy your luxurious vacation home from budget and hidden costs to location and amenities.
A lot of buyers think only of the initial budget required to buy their dream getaway. However, your budget should make provision for a lot more than just the purchase cost.
Keep in mind that you’ll have to furnish your holiday home, and keep it maintained. Buying a luxury home with expensive maintenance costs is a common mistake made by first-time buyers.
Hidden and Additional Costs
There are a few more things to consider for that budget we mentioned. Have you taken utilities into account? What about property taxes, HOA fees, and cleaning services?
According to BrokerLink Insurance, you need to insure your vacation property, just like your home. Depending on how you use your vacation home, you might need more than property insurance, especially if you rent it out to vacationers.
Location: Language, Amenities, and Risks
Choosing the right location is important for a few reasons. For example, it wouldn’t do much good buying a vacation home in the mountains when you’re looking for quick access to beaches. It’s important to choose a location that has the type of weather and entertainment you enjoy.
The language barrier is something else to consider. Imagine needing emergency assistance and not finding a single person who can understand you if you don’t speak the local language.
What about amenities? Being in a secluded spot, hours away from civilization, wouldn’t do you much good if you’re a big fan of shopping.
Some locations also have higher risk factors. There might be an increase in the crime rate during the offseason when many vacation homes are empty. Similarly, you might be at risk of natural disasters such as earthquakes, hurricanes, or even avalanches.
Remember the principle rule of buying property: “Location, location, location.”.
Empty Properties and Rent
Is your holiday property going to be empty for long periods, or are you renting it out? Both these options come with unique challenges and costs.
If your property is going to be empty for most of the year, you’re going to have to up your insurance and invest in some protection. Empty holiday homes are prime targets for thieves and squatters.
You might get a nasty surprise when you get back to your seasonal getaway home. Since you’re not there when something goes wrong, you might open the door to find massive water damage from a burst pipe.
If you’re renting out, you need to consider possible damages caused by renters.
If you don’t want to turn your dream holiday into a nightmare, you should always consider carefully before investing in a vacation home. Remember to consider weather, maintenance, amenities, and budget before making a final decision.
Do your research ahead of time and choose carefully. That way, you can have a vacation home that makes for great holidays, and even generates an income when you’re not using it.