How to Successfully Purchase Your First Vacation Home

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Posted on: 11 March 2016 by Gael Milton

Talk about real estate and everyone tends to talk about how they are going to make money. But if you’re in the market for purchasing an exotic vacation home and staying there, you may be wondering who you turn to and how you get started.

Talk about real estate and everyone tends to talk about how they are going to make money. But if you’re in the market for purchasing an exotic vacation home and staying there, you may be wondering who you turn to and how you get started.

The big benefit of buying a vacation home is you don’t have to worry about future profitability. You can purchase a property at the market price and be perfectly happy.

But buying your first vacation home is filled with difficulty. There are a lot of places where you can slip up.

Go There First

It’s easy to look at the photos in a catalogue and believe that’s the place you want to be. But what a catalogue can never show is the area you’ll be living in. You don’t know how happy you will be in a place until you see it for yourself.

Go out of your way to go to the vacation home and stay nearby. Think about whether this is a place you would want to return to every year first.

Understand Total Costs

The total costs of ownership include more than the initial purchasing price. Take into account any taxes you have to pay and any regular maintenance fees. For example, if you are living in a complex you may have to pay extra for the general upkeep of the public facilities on offer.

Figure these into your budget before deciding whether this is a good deal for you or not. Too many people forget to take into account anything more than the purchasing price.

What about Maintenance and Repairs?

A vacation home will always require some maintenance. For most of the year, you won’t be living there, and so your house is going to take a beating. This may be as a result of bored teens or the rainy season in Cancun. Remember that the first few days of your vacation season will be spent fixing it up again.

Are you willing to dedicate this time?

Does it Come with a Rental Income Option?

If you are not yet retired, your vacation home will be sitting empty for most of the year. This isn’t good for maintenance reasons, and plus you are still paying for all the expenses. The best vacation rental homes should come with a rental income option.

During the low season, you may decide to rent out your pride and joy to someone else. You will be able to cover your costs and you may even be able to make a profit from it.

When it comes to renting, to maximize your income you may be forced to give up some of the more prestigious dates for vacation time. You don’t have to, of course, but in popular areas this is where you are going to make the majority of your money.

The Real Estate Company

If you are dealing with a foreign real estate business or company, you have to make sure that they are the real deal. Perform checks on them and ensure they have experience in dealing with US buyers. You want a company with a good track record so you know you are going to be well taken care of.

Your real estate company should help you every step of the way, including negotiating any complex foreign buying processes.

How Easy is it to Get There?

If you have to take a plane, then a train, then a three-hour rental car ride, you are not going to use your vacation home much. There are a lot of remote vacation homes on offer, and the reason they are on the market is because it takes too much effort to get there.

You should have little problems getting from door to door. This should be a relatively simple process. Your vacation shouldn’t start off on a low note.

Conclusion

Buying a vacation home is less about the price and more about the practical aspects of owning a second home. It isn’t for everybody as it comes with a lot of work. The best tip you should take away from this article is that you need the right real estate company to ensure that everything runs smoothly and you get a fair deal.

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