Like millions of people have you thought about a vacation home but found you didn’t have the money or the money would be better spent elsewhere? Well there is a trend of people having their cake and eating it too but buying vacation properties as both investments and vacation homes. Whether you are interested in a mountain cabin or beach bungalow, here are some investment tips for buying a vacation property.
Research all four seasons before you buy
What feels perfect in February maybe debilitatingly hot by August and what seems like the perfect quaint beach town might be a ghost town come rainy season. Make sure you do your homework and make your property is good for vacations year round. You don’t want to be stuck spending your vacation in the rain or stuck with an empty rental property. A quick google search on climate is a good place to start but there is no substitute for looking with your own eyes during a couple different seasons before buying.
Work with an agent
The further you are from home the more important this tip is. Since it is a vacation home, it’s likely you are not from the area and especially when dealing in a foreign country and language having a real estate agent will not be recommended but maybe even a necessity. A local agent will know the ins and outs of the rental market as well. They may even be able to help with all the laws and red-tape often required for international purchasing.
Buy an existing home instead of land
Another one of tour t ips for buying a vacation property, while it may seem like a common sense to build a house to your specifications instead of buying a used home, this might not be the best idea for a rental property. You want to make sure you are turning a profit on your rental property and the start up costs of building from scratch will ensure you are starting deep in a hole. Also what is your dream home is not necessarily the dream home of your renters, so the extra expense on customization could backfire. You will have to sacrifice a bit of you personal touch for a more universal appeal.
Home sharing is the latest trend in travel. Sites such as AirBnb are disrupting the vacation rental industry. So before you purchase make sure you are doing your homework, you can use these sites to see what renters are willing to pay and how saturated your market is.
As always any investment is a risk, so make sure you consult with your financial advisor and do all the necessary homework before you buy any properties. If everything looks good best of luck in turning your vacation dream in a income generating bonus and I hope these tips for buying a vacation property come in handy.