Parting with the amount of money a vacation home costs is a big deal for any family. After all, you don’t want to waste your money, not get what you were looking for, or end up paying more than you actually should. However, the process of buying a vacation home, especially if it’s in another state or country can be a complex one. That is why I have put together the guide below that should help you to answers all the question you have about the process, even the one that you were afraid to ask!
Is it a good idea?
If you are considering buying a vacation home, one of the first questions you may be asking yourself is whether it is a good idea? After all, only those folks with loads of money to spare have second homes purely for taking a break in, right? Well, yes and no! Of course, there are many rich and famous people that have multiple properties in which to spit their time. However, buying a holiday home can be a good investment in many ways.
The first way that buying a vacation home is a good investment is that you can save money on family breaks. That’s right it can work out cheaper to pay for your vacation home where you can follow your schedule, take your pets and cook for yourself, rather than paying for enough hotel rooms for everyone, especially if you have a large family!
The second way that buying a vacation home can be a good investment is that you can make money on it. You can do this either by selling it on when the market is good and therefore making a profit on your original investment. Alternatively, another way to make money from this sort of property is to lease it out during the periods that you and your family are not there. This then creates an additional income, something that is often used toward the mortgage on the property making it much more manageable debt.
What types of homes are on offer?
Apartments make popular vacation homes for couples and small families.
Once you have decided to go the whole hog, you need to consider what type of homes are on offer and what would suit your needs best. There is, of course, a wide variety that you can choose from including condos, apartments, townhouses, and low rises.
The key issue here is to pick something that both suits the use you will be putting it to, and that fits your budget comfortably. For example, if you have 3 or 4 children that will be traveling with you to your vacation home, you will need to look at a larger property such a townhouse, so you all have enough space to enjoy your break. However, if you are looking for a vacation home for just you and your significant other, a smaller condo or apartment may work just as well.
Where should we buy?
Now, everyone knows that when it comes to real estate, location is king, and this is no different when you are buying a holiday home. In fact, there are two points you need to consider in term of location before you buy.
The first is whereabouts in the world you will choose for your vacation home. Some folks like to keep their choices within the US, preferring to pick a place in another state that is easy to travel to. This has particular advantages because it enables them to take weekends away without too much hassle or cost.
Others prefer to look further afield for their vacation homes, even going so far as exotic places like Malaysia and Singapore. In particular, Singapore is a popular choice because not only is a fabulously modern city-state with excellent public facilities, but the HDB resale price is on the downturn at the moment. What this means is that it is an excellent time to purchase a state-subsidized HDB (Housing and Development Board) property at a great price, making owning a home in such an exciting location well within many more families’ reach.
The second issue when it comes to picking the location for your vacation home is the actual position of the property within the areas it is based. This relates more to which neighborhood you would like to live in, as well as the surrounding landscape including whether there are areas of outstanding natural beauty such as mountains, beaches, or lakes nearby.
Of course, different families will have varied requirements in term of the placement of their home. Although it is worth bearing in mind that buildings located close to beaches and mountains often include a premium added to the value of the property itself, so can cost significantly more.
How do we buy?
Lastly, for many families, the actual process of purchasing their second home is something they would like to know more about before getting down to the nitty-gritty of signing the documents. Of course, the process does depend on where about you are making your purchase as different states and countries have different laws that need to be followed.
In general, though, the first step is to identify some areas that appeal to you and investigate them in more detail. Are they safe, clean, and pleasant? Are they primarily residential, or are they are there local businesses in the areas as well, and how do you feel about this? Also remember to consider what the local facilities are like such as medical centers, shops, and entertainments?