4 Essential Things to Consider When Buying a Holiday Home
Most travelers fall in love with a place sooner or later. It could be a small town, a big city, or anything in-between. If that’s your case, you might consider moving there so you can enjoy the surroundings to the fullest. Consider these things before buying a holiday home.
Have you always dreamed of owning a home away from home? Do you wish to have a place that you and your family could escape to at any moment’s notice?
Holiday homes are one of life’s finest luxuries. People create second homes from themselves around the world. From major cities to the beach or countryside, the possibilities are endless!
Buying a holiday home is not cheap nor easy to do, however, and few people ever get to fulfill their dreams of owning one. But with the right knowledge, you can start making big moves towards owning a second home!
Are you in the market for a holiday home? Or, are you simply curious about what goes into buying one?
Here are 4 things to consider when it comes to buying holiday homes!
1. Location, Location, Location
Location is, hands down, the most important thing to take into consideration when searching for a holiday home.
Nobody buys a holiday home just anywhere. And the freedom to choose where you want to live makes the prospect of owning a second home so endearing.
You may have dreams of living somewhere that’s foreign and intriguing to you. But you should never purchase a home without visiting a city or country first.
Before traveling, you’ll need to do lots of research. Here are some questions to take into consideration when choosing a location:
- What do you want out of the experience of owning a holiday home?
- Do you see yourself in a city or somewhere on a beach or in the country?
- How far are you willing to travel on the weekends or on holiday?
- Do you want to own a house or apartment?
- Which type of climate do you prefer?
People not only spend years saving up for holiday homes. They can spend a lifetime dreaming of the perfect location. Take your time!
2. Budget Smart
You should establish a budget in the early stages of research. That way, you can narrow down your options based on what you can afford.
Buying a second home is a big responsibility. You have to be able to make your mortgage payments on not only your second property but your full-time home. Not to mention, you have many other living expenses to take care of, as well.
That’s not to say that all vacation homes are expensive. You may be able to find affordable properties in your dream city or town.
Even if you can’t afford a second house, you might be able to afford an apartment. Or, you can compromise by buying a great home in a cheaper location, even if it’s not your first choice.
How Will You Pay for Your Holiday Home?
Figure out what you can afford every month in mortgage payments and taxes. Then, you’ll need to figure out how to pay for your holiday home.
Will you take out a conventional or home equity loan? Can you afford to pay in cash?
By setting a budget, you’ll be able to better explore your options. You’ll also save yourself a lot of time in the early phases of buying a holiday home.
Another thing to take into consideration is rental income. You may decide to buy a holiday home in a touristy area. In this case, you could stand to make seasonal income by renting out your holiday home.
Whenever you don’t occupy the property, you’ll need to make up for the loss of income. You may even decide to flip a house, turn it into your holiday home, and increase its value single-handedly!
3. Your Vision & Property Value
When buying any type of property, you should always take value into consideration.
The value of a property can change over time. Things like location and proximity to amenities, like beaches and shopping centers, can affect the value of real estate.
The value of your holiday home can have a big impact on your future. If the value of your holiday home increases over time, you could sell for a profit in 5 or 10 years.
Or, you may not want to sell. You may even buy a second home and move into it after retirement, for example.
Consider where you see yourself in 5, 10, and 20 years from now. Then, think about where your holiday home will come into play.
4. Features & Amenities
Setting a budget and pinpointing a location are the first steps of buying a second property. Next, you’ll want to consider which features and amenities are most important to you and your family.
Here are some questions to take into consideration:
- How close do you want to be to neighbors and shopping centers?
- Is energy efficiency important to you?
- Can you get by without air conditioning?
- Can you afford to hire a landscaper for when you’re not there?
Establish which amenities you need and separate them from those that you desire. Then, budget accordingly. Even if you can’t afford something now, that doesn’t mean you can’t down the line.
Plan with the Future in Mind
For instance, if you have kids, you’ll need a house or condo with multiple bedrooms. Even if you don’t have children now, you should still choose a holiday home with the future in mind.
Let’s imagine a married couple decides to buy a second home in Queensland, Australia, for example. They don’t have children yet, but they plan to in the future. At the same time, it’s important to them that their holiday home is near the beach.
In this case, this couple should not only consider a house for sale in a coastal area. They may want to consider a house for sale that has more than 2 bedrooms in a family-friendly community. You may have an easier time going through a home development company if you have very specific needs.
Make the Most out of Buying a Holiday Home
Buying holiday homes is not something to take lightly. A lot of budgeting, research, and hard work goes into owning a second home. But with thorough planning and dedication, you can turn your dream of owning a holiday home into a reality.
Before buying a holiday home, you’ll need to do some scouting. That could require an extensive amount of travel if you have a variety of locations in mind. Check out these accommodation tips to help you along the way!