Posted 8.26.14 @ 9:5
Buying a luxury vacation home is a huge investment. Yes, you may not spend a lot of time at your luxury vacation home and may only be buying one for a summer time or a wintertime getaway; but, just like buying any type of property, you should consider it as a form of investment.
To assist you in getting that perfect getaway, read on the following top 8 things to consider when buying a vacation home.
Do You Love What You See?
Prior to even thinking of buying a vacation home in a certain area, you have to make sure that you love the place first. It does sound pretty basic but you have to be certain that the area is a place where you can see yourself spending a lot of time at in the future. Buying a vacation home is a serious commitment because unlike hotels, you cannot simply change rooms or bookings when you tire of the place.
How Much Will it All Cost?
Understanding the total price of ownership is as important when buying a vacation home as it is when buying a home as your primary residence. Take note of the insurance, property taxes, and the maintenance fees for things like trash removal, gas, electricity, water, landscaping and more. These are additional costs which many fail to include in their budget. The last thing you want is be surprised about how much extra working hours and how much less vacation time owning a vacation home costs.
How Safe is the Area?
Prior to buying your vacation home, you may want to check out the local crime rates especially if you will be away for long periods of time. Having alarm monitoring and security systems should be a part of your budget too.
How Will the Home be Taken Cared of When You’re Not There?
Management fees are another expensive fee specific to luxury vacation homes. You will want to find a property manager who is local to the area to take care of maintaining your vacation home, especially if you will only be there a few weeks a year. A property manager may sound like over-kill but if certain damages go unnoticed for long periods of time when you’re away, like a leaking roof, it will end up costing you a lot more.
How Much Work Needs to be Done?
Usually, the first week of owning the vacation home and every first week of staying in it every year is a flurry of repair activities and other home maintenance concerns. A vacation home needs just as much care and maintenance as a primary home does.
Will it Do Well as a Source of Rental Income?
Since purchasing a vacation home is an investment, it makes sense that it should be able to generate its own income. If you chose a good investment piece, the maintenance fees and other costs can be offset by income from renters while you are not using your place. Better yet, income from the rental fees may even be able to fully cover how much the property costs.
To have an idea about your vacation home’s rental potential, talk to vacation rental companies and real estate agents. Look at both online and offline sources of information to know how much occupancy rates are and how often places in your area are usually rented out.
What Time of the Year is High Season?
If you are buying your vacation home at a tourist or at a vacation spot, you have to know when ‘high season’ is. For example, if buying property in a ski town, know that peak season is around December to February and if buying property in a tropical or subtropical area, tourists typically swarm on the winter months. This is important to know especially if you are planning to maximize your home’s rental income.
How Accessible is Your Getaway?
It is no fun owning a vacation home if getting there uses up a huge chunk of your vacation time. True, owning a mountain cabin or a house in the middle of a lake sounds magical, but if it takes you more than half a day to get to your getaway, then you simply won’t look forward to getting there at all.
Owning a luxury vacation home in Oakville is a stroll in the park when you get the right team to do the job for you. The Goodale Miller Team does your work for you so you can sit back and enjoy browsing potential luxury vacation homes from our listings. Contact us to find out more about Oakville’s luxury vacation homes.