Vacation Home Buying Tips
If you are considering buying a Vacation Home, here are some helpful tips to remember.
1. Don’t buy in a “bubble” market. In other words, don’t buy in an area where there are too many speculators; i.e., such as Southeast Florida. In rapidly developing areas where lots and lots of developers build and hope “The risks of the bubble bursting when supply exceeds demand and your getting soaked are much higher. It may be better to purchase in an older area that’s already well developed, like Breckenridge Colorado. The supply is so low in these areas that real estate tends to hold its value. In fact The Breckenridge Real Estate Market has seen double digit inflation for the past 3 years. The Summit County Building department has estimated that the county will be completely built out in the next 3-5 years, 2010 -2012. What drives the Breckenridge Colorado real estate market is the fact it is home to the second busiest ski resort in North America . They saw a 36% increase in sales volume in 2006 over the previous year.
2. Buy with your wallet, not your heart. Make sure you’re buying a smart investment. This is especially difficult for vacation homebuyers because they tend to be more risk-takers who tend to use our emotions more than their head. It’s easy to get caught up and sign on the dotted line when you see that gorgeous beach home or perfect ski resort. Know the numbers. What has the market done in the past. What are some of the factors that can effect the value of real estate in the area? Do not forget to factor in the cost of a management company if your considering renting the property out for a portion of the year. They can range from 20-50% of gross rent. No intention of renting? Leave your options open. Never say never, urges. Today it may be financially feasible to not rent your home, but what will tomorrow bring?
3. Rent out only seventeen weeks and your new vacation home will pay for itself. When your monthly mortgage payment is less than or equal to one peak week rental, twelve weeks of rental will cover your mortgage payments for the entire year. Other costs, including bills for your phone, power, cable, and association dues, may be paid out of your earnings from approximately five off-week rentals. Recent surveys conducted revel that the average weekly rate is $1,656, and that the average property is rented out twenty weeks. These figures suggest that the average vacation home brings in more than $33,000 in rental revenue each year.
If you would like to work with one of our professional realtors, specializing in second home, vacation home ownership please lets us know. We are avalaible 7 days a week!
