Many Americans wish they had a holiday home they could escape to,and with 3.29 million American households owning second homes it’s clear that this dream has become a reality for plenty of people. Holiday homes offer all kinds of benefits, so it’s easy to see why it’s a popular option. From the financial rewards that investing in a second property can bring over a lifetime to the relaxation and the opportunity for a temporary escape from a busy life it provides, there are plenty of reasons to consider owning one. However, there’s a lot to think about before you take the plunge.
Holiday homes come with responsibilities, so you need to be sure you can meet your obligations. You’ll also need to whittle down the shortlist of potential properties based on everything from location to decor. This article will guide you through the process and explain some of the key considerations you’ll need to make.
Running costs
Before buying a holiday property, it’s important to think about how you’ll fund the new place. Mortgages can sometimes be secured for holiday homes, but you may need to speak directly to your lender and work out a special plan – so build in time to do that. Some people who choose to buy a holiday home are in the lucky position of having the cash outright, in which case there are fewer constraints to worry about. But in both scenarios, you’ll need to think about how you’ll pay any applicable local taxes as well as ongoing costs like water and heating.
One option some holiday home owners go for is to rent the property out to other holidaymakers while they’re not there. Provided the costs aren’t too huge, this can be a great method as it means that the running costs can be covered by the rental income from the empty periods. In some cases, it’s even possible to make a profit doing this. Remember, though, that you’ll need to pay to keep it clean for each new guest if you don’t live nearby, and it may mean your holiday home is occupied during the same peak seasons that you want to use it.
Location
Location is always going to be a big issue when it comes to finding the right holiday home for your needs. If you like a certain outdoor activity, then it makes sense to site it there. Skiers, for example, may choose Colorado, while surfers may want to consider California. Location is also important in terms of access, too. If you need to fly from across the country to get to your holiday home, you may want to consider somewhere within an hour of a major regional airport.
However, there’s also a commercial aspect to choosing a location. Picking a holiday home in an area which has seen stagnant or even falling house prices isn’t wise, as that could mean you’d end up with less than you put in if you need to sell the property in a year or two. It’s worth looking back over recent house price data before signing on the dotted line.
Design and decor
Design and decor are extremely important parts of any real estate decision, but especially so for a holiday home. After all, you’ll be the one who spends time relaxing there.The first design element to think about is the layout and building structure: do you want, for example, a holiday house or simply a condo? Luckily, most neighborhoods have a variety of options to pick from. Take Park City, Utah: Deer Valley condos for sale sit alongside larger properties in the wider area, so condos aren’t the only option.
Most interior design choices can be changed with the help of an expert or through DIY but bear in mind that this is expensive to do. If you want to redecorate fully and you’re paying a mortgage, remember that you won’t be able to get any paying guests in while you decorate – so you may have to cover the mortgage yourself if you’re following the “rent it out” method outlined above.
Buying a holiday home isn’t going to be a bump-free process, and that’s particularly true when it comes to narrowing down the list based on location, design and more. But these decisions will need to be made in order to find the right place for your needs, so it’s worth thinking about it as early on as possible. That way, when purchasing time comes you’ll be making an informed choice.