Right now is the best time to purchase a new vacation home, despite the current real estate market. It is possible to find an affordable vacation home right now because home prices are so low. Many people are frantically trying to sell their properties to avoid foreclosure. Another reason to buy now; interest rates are pretty low, as well.
Do you want a home on the beach, a cabin in the mountains, a lake house, or a villa on the ski slopes? Whatever type of vacation home you are looking for, here are a few things to consider before you actually buy that perfect getaway.
Out Of-The-Box Thinking:
Most “trendy” locations aren’t likely to have the lowest prices on homes, but there are many other locations where you can find a beautiful, inexpensive property that you’ll love. When you buy in an area that is touristy, like Palm Beach or Malibu, you’re really only paying for a name, but if you search for a home in an area that is less travelled, you are more likely to have the peace and quiet a vacation home offers, with a great price tag.
Look For Emerging Vacation Spots:
You should look for a vacation home that is showing growth, but isn’t quite there yet. If you get in on the ground floor of an underdeveloped area, you are more likely to pay much less. Once the neighbourhood is booming, your property value will sky-rocket.
Getting pre-approved for any property will tell you what properties in your price range are where you want to buy. Your ability to purchase before anyone else gets their hands on the property you want will be that much easier because you are pre-approved.
Be Cautious With Foreclosures:
Foreclosures can sometimes cost more than they are worth, as they have been vacant for some time and may need repairs. Talk to your realtor to find out exactly how much work needs to be done. Be sure to look at the property yourself to see just how much work you will have to put into it and if it really is worth the money you may have spend to fix it.
Think Of Renting Out The Property:
You may be thinking about renting out your vacation home when you aren’t using it. This will help you make the mortgage payments on it, as well. You may have to hire a rental manager to show the property for you, but you will also have to have someone take care of the property anyway when you aren’t there. A rental manager can do both. Make sure the manager knows exactly the type of people you will accept as renters and what they have available to them on the property. This helps protect you and your property against damage.
When you have an idea of where you want your vacation home to be located and how much you are willing to, and can afford to, spend, talk to an agent who knows that area. He or she will be able to tell you what homes are in your price range and which homes need the least amount of repair. Once you are locked in, you can begin to enjoy your vacation home for years to come.