Thanks to the exciting and unique benefits that vacation homes have to offer, they tend to be popular real estate investments. Choosing to purchase an additional piece of real estate provides an excellent and reliable return on investment (ROI) while also offering the potential for rental income as well as a "free" vacation destination. As you begin your search for a vacation home, here are a few things to keep in mind to ensure you get the most out of this important investment.
Determine a Budget and Stick to It
To make sure that you don't look at vacation properties that are out of your price range, take a close look at your finances and determine what you can afford. Make sure that you stick to this budget to ensure that your real estate investment doesn't become a hindrance later down the road. Calculate your monthly mortgage payment and figure out how much you can afford to put down. Do not forget to consider additional expenses like closing costs, HOA fees, taxes, home insurance, maintenance, and utility bills.
Select a Location
When shopping for vacation real estate, it is crucial that you take the location into consideration. If you plan to use your home as a rental property, whether for the short- or long-term, the location can play a huge role in the amount that you will charge for daily, weekly, or monthly rent. While the school district may not be as high on the list since this is a vacation home, but access to convenient shopping, amenities, and water will all be important.
Try to Avoid Timeshares
At first, it may seem like a good deal to get involved with a timeshare; however, when it comes to investing in real estate, timeshares aren't the wisest idea. You will spend a significant amount of money on a piece of property that is hardly used and have minimal control over when the property can be used by your family. Therefore, it is best to purchase your own property so that you can get the investment back by renting it out or selling it later down the road. Plus, you will have 100-percent control over the property. If you don't want to deal with the maintenance of the property, then you may want to consider purchasing a condominium.
If you would like to learn more or start looking at vacation homes for sale, contact real estate agents in the area where you would like to purchase.