5 Factors to Note Before Purchasing a Vacation Property

by Kim Archer 06/02/2019

If you are mulling over purchasing a vacation home, then you must go over a few considerations before you make the final decision. If done for the right reasons, it can end up being a great piece of investment, as you can save hotel and lodging costs when you visit and then rent it out during off seasons.

  1. Location. Location is essential because you can't just up and move at will, so consider the area of the property you are contemplating purchasing thoroughly. Will the site accessible and attractive to future guests? Is it located in a place that is prone to natural disasters like hurricanes and storms?
  2. Calculate the associated costs. Many other costs come along with purchasing a piece of property such as utilities, maintenance, homeowner association costs, property taxes, and insurance fees. You want to factor all this and determine that they are well within your budget. If you plan on using rental income to cover some of these costs, then you have to be practical about what rental income typically is in that area.
  3. Maintenance Issues. If you are buying that vacation property as an investment, then you have to make arrangements for who is going to manage it in your absence. Things like security and surveillance are critical. The speed at which you repair a bad pipe or faulty wiring may be the final defense between your house going up in flames or flooding. If you aren't around for long periods, plan to hire a facility manager who can supervise affairs.
  4. Finances. Run a money check with your financial adviser. Get someone to look at other tax issues such as buying out of state property. You might find that property taxes on that new place may not be deductible. Are you going to be able to meet up with your other long term financial commitments?
  5. Local laws. It's always necessary to run checks on local laws and regulations about homes in the place you choose. Make sure you hire a local property professional too as they are likely to be more thorough. Are you going to be allowed to rent it out, and are there regulations on the number of days it can be rented out?

Whatever you do, make sure you cover all your bases and consult with our realtor before you sign the final contract.

About the Author
Author

Kim Archer

Real Estate Professional (17 years experience)

Specialties: Buyer's Agent, Listing Agent, Relocation

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Thank you for visiting our website. I hope this online tool is informative, user friendly and becomes your online Real Estate resource.

Being a second generation Real Estate agent I have seen this industry evolve since the mid 70's. Repeating history as we blink.   Starting my training at such an early age along the side of my Mom and mentor Dee Petullo has taught me to be the Agent I am today along with the extensive training at First Team Real Estate's Success Academy.

Beginning my career in June of 2002, was the just beginning of my journey. At the end of the 3 month training I was awarded Top Listing Agent, Top Selling Agent and Top Producer from my graduating class and my office.  I was also awarded Rookie of the Year after being in the business for 6 months.  Dedication, hard work and a great team of lenders, escrow officers, title companies and home warranty companies has helped me become the best I can be. I have also had the honor to be part of First Team Real Estates Hall of Fame Top Producers since the very beginning.  I have also be nominated by my colleagues in Orange County as Broker Agent and had a magazine published with this honor.

As of 2010, I made the switch to Evergreen Realty and have continued to help sellers get top dollar and buyers achieve their dream of becoming homeowner.  Working at Evergreen I have achieved Top 10 agent on a consistent basis.