Considering a vacation home? Many people found the ability to afford a vacation home in the early part of this century, because they’ve amassed a huge amount of equity in their primary residences and the stock market wasn’t providing anywhere near the returns they could make when buying investment properties or vacation homes.
Most vacation homes were purchased in close proximity to beaches, camping, or other highly desirable travel destinations such as Florida, Arizona, Texas and California.
European vacation homes became trendy again with an emphasis on Spain, Greece, England, and Italy. While the Asian markets maintain a higher than average price point, there have been some well to do business people who travel to these locals regularly who have made investments made in areas such as Japan, Thailand, and South Korea. Australia’s Gold Coast has also seen an influx of secondary homebuyers due to its beautiful year round beach weather.
There are many reasons people have chosen to move into secondary homes, not necessarily considered a vacation property simply for the fact of its use. Some people may opt for the warmer climates during winter season, while returning home in the summer months. Others may work in areas where they’re not able to commute to work every day and thus need some type of additional housing and consider renting an option they would rather do without.
While buying a vacation property is typically the same as buying your primary residence, you might want to consider visiting and spending an extended period of time in the area were you’re looking to purchase so you can get a feel for the local market and also to see what it’s like to live there.
No matter where you choose to purchase a vacation home, some of the best spots are found near water. At the beach, on the river, or sitting on the dock of the Bay, water properties are typically thought of as special places of leisure time use.
Most vacation homes are purchased with the idea in mind to rent the property while it’s not a use by its owners. This is a great way to afford a vacation home but you should also consider the consequences. Another consideration is who is going to manage the property when you’re not there? If you’re going to higher a management company you should obviously expect to pay some type of fee for this service, which could also cut into the rental income needed for the property to support itself.
All in all, a vacation home can be a great getaway for you and your family to enjoy many outdoor activities such as swimming, tennis, golf, sailing, fishing, and many other exciting outdoor activities. Do your research, find a property that best suit your needs, obtain the right financing and then kick your feet up and read that book you’ve been putting off and enjoy your holiday!