If you’ve got enough money to spare, then the idea of the vacation home is a highly tempting one. A place you can retreat to for regular trips that don’t cost you a bomb every time. Your chance to have your own private spot in your favorite place in the world. It can even make you a little money. But if you want to have a slice of that dream, you better be prepared to work for it, too.
Location is always the most important
As with buying any other property, you need to narrow down the particular locations you’re willing to find a property in. This might mean doing more research with a preparatory trip to the country, city, or region of your choice. If it’s just for you and your family, then what appeals the most to you about that certain location and are you going to be in proximity to it? If you’re buying a vacation home as an investment to rent out to others, you need to think a little more broadly in terms of its appeal. Are you getting a place to serve as a retreat with gorgeous natural sites surrounding it serving as its appeal, or would you be better getting somewhere close to a tourism hotspot? You have to think not just about what you want, but what vacationers are looking for in a rental, too.
Think about how you will use it
You also have to think about how often you will use it and just how you will use it. This can dictate some of the amenities you’re willing to invest in but it will also dictate what tax breaks might be available to if you’re owning it as a secondary residence as shown at investopedia.com/articles/personal-finance/013014/tax-breaks-secondhome-owners. You should expect to pay taxes on your property and do your research on the local rates. Designating it as an investment property will offer less in terms of tax breaks, but the additional income can serve as an incentive all its own.
Be serious about researching the market
Spend a lot of time researching property prices and the fluctuations of the market before you even think about taking a tour or putting down an offer. Don’t just look at the prices offered by agencies that specialize in helping investors find property abroad. Their rates can sometimes distort the real value of a home, so look at local listings like rumahdijual.com/bogor/, too. With the help of a currency converter, of course. Be sure to get an idea of all the costs, too. Buying a home overseas can come with additional expenses in the complicated legal process, not to mention any homeowner association fees, rates, insurance, local furnishings, and so on. You need as full a financial picture as you can get before you’re ready to buy any property.
Know the climate
There are a lot of good reasons to do your research on the climate of the home all-year round before you buy it. For one, seasonal gardening, landscaping, and decor can be a huge factor for getting a return on your investment, whether it’s in attracting guests or building its value over the years. But you also have to consider whether you have to invest in any extra protection to shield the home from the elements, whether it’s the potential of heavy storms, snow, or the erosion of saltwater often found at beach houses. Know what you’re getting into, up to and including the weather.
Make it pay for itself
As we’ve mentioned a few times already, a vacation home can serve as much more than a place to visit every year or every other year or an eventual place to retire. Depending on where it is, it can be a method to diversify your income. But if you want to make serious money from it, then you need to treat it as a serious business as quickbooks.intuit.com/r/professional/5-tips-to-earn-more-from-your-vacation-rental-business/ shows. You have to research and invest in advertising, setting up an account to accept credit cards and other payment methods, and extra little services that can make it a much more appealing choice to potential customers such as cable, a hamper delivery for new guests, and more.
You want to protect your property, that much is a no-brainer. But how do you really make sure that a vacation home is safe when you spend the majority of the year away from it? With a property management agent, you can make sure that guests haven’t caused too much damage, but you want to be aware of any vandalism or intrusion risks as well. If you’re willing to invest in a vacation home, you must be open to investing in added security as well. A digital security system, CCTV cameras for the exterior, even something as simple as extra lighting for exterior and light timers for the interior can all do much to keep any potential criminals away from the property. Be careful how much you tell strangers about the home, even if they’re clients, too.
Look after it
Another security risk is leaving your home look like it’s not currently being lived in. There’s no easier way to show thieves that they’re looking at a low-risk target. But if you fail to maintain the exterior of the home and keep it free from clutter and mess, its condition is going to deteriorate over time. It’s most certainly not going to be an attractive proposition to potential guests, as well. But what can you do if it’s in another state or country? This is, again, where property management services or professional cleaning services come into play. It’s another cost worth considering, but if your vacation home is a prime spot for guests, then it’s worth investing in.
Owning a vacation home can, indeed, be everything you dreamed about, but you have to make your choices carefully and know how they’re going to impact both your lifestyle and your finances. Hopefully, the points above have you asking the right questions and ending up with a second home that’s right for you.