In today's hectic world, the decision of buying a holiday or vacation home is very tempting indeed, but before one takes the plunge there are a few things that should definitely be kept in mind.
Figure out first, why do you need a second home? Will it serve as your retirement or vacation house or a financial investment? These two factors can potentially effect the final decision you make regarding the location, type and price of the house.
If the purpose is to serve truly as a vacation house then be very careful when deciding the location of your dream home. An ideal location would obviously be a destination that you love going to, not just once or twice but time and time again. Choose a place that you have been to and liked.
Before going house hunting get your finances in order. Getting a pre-approved mortgage would help you make the decision, come the crunch time. Be honest and realistic about your limits and make sure you have the payments planned, at least in theory.
Another decision is the type of home you are looking for. A mansion, villa, cottage or a condo all are available options. There are pros and cons for all different options. With Condos and town houses an additional expense might come into play with the HOA fees, but then the maintenance would be taken care of by the HOA as well.
If you want a retirement house, keep in mind facilities that are offered in and around the place for senior citizens. Public transport, medical facilities and clubs etc in the vicinity will make life a lot easier and enjoyable in days to come.
A vacation home should ideally be located at a convenient distance from the primary residence, around 3 to 4 hours drive. Close enough for you to make it easy to travel to every odd weekend or so, but not so close that you would be running there every time an emergency repair has to be made.
The locale should offer you enough to make your stays pleasurable. Golf, fishing, skiing, hiking or whatever else takes your fancy should be on offer in or around the place. The community plays a big part in this regard also. An inviting and friendly neighborhood will certainly add to the quality of time you spend in your holiday house, making your holidays fun.
Buy a vacation house for love; love of the place and its escape value, making it an investment into your mental and spiritual well being rather than monetary gains with a time line of 10 to 15 years. If buying a property in the desired area is looking out of reach, consider the up and coming markets as they would have the potential to grow a lot more than an established destination.
When you rent out a vacation home, it is considered as an income source for you and would incur taxes as well. Make sure you can handle that aspect of your investment as well. Once you are satisfied with your finances and find the right tree and the perfect nest, use it to your heart's content for the purpose you intended it for. Enjoy it, relax and make the most of your valuable escapes.
