Owning a vacation home can be a dream come true for some, but it can also be a very ambitious undertaking. A vacation home can be a source of pleasure along with rest and relaxation, as well as a long term investment. Before jumping into the deep end of the vacation property pool let’s discuss five tips to consider when purchasing vacation property.
1.) It is important to spend time in the area before putting down your hard earned cash to purchase property. Because you will be spending a significant amount of your free time there, it is essential it is someplace that simply takes your breath away.
2.) One of the most important considerations is keeping the place secure when you are not there. An option for this is to hire a property manager who will make sure the property is maintained as well as keep an eye on the place when you are not there. It may sound like an extravagant cost, but compare the price of a property manager to the cost of repairing damage such as frozen or broken plumbing, storm damage and even vandalism, especially if goes unnoticed for a period of time. It may also be worth the cost of a security system that you will be able to monitor via mobile device.
3.) It is essential to know what all the costs of ownership are going to be. Costs include insurance, property tax, upkeep, security if such a system is installed, and property management if you decide to go that route, utilities, trash removal, and costs associated with shuttering the property for the season and opening it again next time around. Don’t forget seasonal care such as landscaping and lawn mowing and snow removal are costs to be included.
4.) A vacation property purchase may include plans to rent the property. The benefits are collecting rent will help pay the mortgage and maintenance, but it will also bring a set of additional tasks including managing rentals and cleaning the property after the renter has vacated the premises. Unless renting your property is a full time job, it will take schedule juggling from time to time to keep the place ready and available at all times. A property manager and cleaning crew might be just the ticket for successful property rental. If rental is part of the property management plan, it is important the location is a place others want to visit.
5.) Another important consideration is getting to your vacation property. As nice as it sounds to have a place at the beach or high in the mountains, if it becomes a chore to get there, your vacation get away may not see much use. The best option transportation wise may be the most direct. An hour or two of driving door to door may most likely be the best option. If it takes a flight, a car rental or a dozen transfers to get where you are going, it might be best to rethink the location. Of course if the vacation property is for seasonal use where you will be spending most of the season getting there may not be an issue.
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