It’s quite the undertaking to go from deciding to purchase a vacation property to the actual purchase of the lot. What goes into choosing a vacation property? There’s lots to consider when you’re interested in investing in something you’ll love that isn’t too far from home. Perhaps it’s the property you dream of retiring to. Regardless, here’s how to invest in a property you’ll enjoy!
Know the Area
Before you even consider any exchange of monies, make sure you know where it is you want to purchase a property and actually get to know the area. Find a local rental to stay for a few days and get to work exploring the surrounding area. Where is the closest grocery store? How about the nearest hospital? Details like this are extremely important when picking the place you want to call your home away from home. And don’t be afraid to get to know the locals, find out where the best coffee is and what folks enjoy doing in the area! If you’ve got kids, find out where the coolest kid hangouts are and what activities you could get up to as a family.
Know Your Budget
It’s been a hard year and many of us are ready to throw our money at just about anything to give ourselves a moment of reprieve from the madness we’ve been living through since last March. But don’t be too hasty to lay down any sort of cash until you’ve made a clear, concise budget for yourself. What can you feasibly afford when it comes to a second property? A good rule to go by is setting aside at least 1 to 2% of the property’s initial purchase price for repairs or any maintenance you may encounter in the first year. Keep in mind that most vacation properties will likely require a larger down payment than your first home, somewhere in the 30% range, and budget accordingly for this. It’s okay if you need to wait just a little longer to save for your dream home. It’s worth it to invest in a property you’ll enjoy!
Know Your Taste
Are you set on a mountain location? What if it’s out of your price range? Would you be happy with a lake lot or do you dream of a cabin deep in the woods? Ask yourself the questions to find out what you’re really looking for in a property. Is it a retirement home? Is it for your kids to help them experience life outside the busy city? Sit with yourself and make a list of what you enjoy and what’s important to you, and remember that list when you’re looking for a property!
The first rule you should follow when purchasing a piece of property is that you want to invest in your own enjoyment so find something that you’re going to really love! At the end of the day, you’re looking for a place to relax and destress after a long week at work or even just an excuse to get out of the city. Whatever drives you to search vacation properties, make sure it ends up being a search for something you’re going to enjoy!
