5 Factors to Note Before Purchasing a Vacation Property

by Camara Realty, LLC 06/23/2019

If you are mulling over purchasing a vacation home, then you must go over a few considerations before you make the final decision. If done for the right reasons, it can end up being a great piece of investment, as you can save hotel and lodging costs when you visit and then rent it out during off seasons.

  1. Location. Location is essential because you can't just up and move at will, so consider the area of the property you are contemplating purchasing thoroughly. Will the site accessible and attractive to future guests? Is it located in a place that is prone to natural disasters like hurricanes and storms?
  2. Calculate the associated costs. Many other costs come along with purchasing a piece of property such as utilities, maintenance, homeowner association costs, property taxes, and insurance fees. You want to factor all this and determine that they are well within your budget. If you plan on using rental income to cover some of these costs, then you have to be practical about what rental income typically is in that area.
  3. Maintenance Issues. If you are buying that vacation property as an investment, then you have to make arrangements for who is going to manage it in your absence. Things like security and surveillance are critical. The speed at which you repair a bad pipe or faulty wiring may be the final defense between your house going up in flames or flooding. If you aren't around for long periods, plan to hire a facility manager who can supervise affairs.
  4. Finances. Run a money check with your financial adviser. Get someone to look at other tax issues such as buying out of state property. You might find that property taxes on that new place may not be deductible. Are you going to be able to meet up with your other long term financial commitments?
  5. Local laws. It's always necessary to run checks on local laws and regulations about homes in the place you choose. Make sure you hire a local property professional too as they are likely to be more thorough. Are you going to be allowed to rent it out, and are there regulations on the number of days it can be rented out?

Whatever you do, make sure you cover all your bases and consult with our realtor before you sign the final contract.

About the Author
Author

Camara Realty, LLC

I have been in the real estate services business in the Juno Beach, Jupiter, North Palm Beach, Palm Beach Gardens, and Tequesta real estate markets for many successful years and will be here for many more. This longevity and confidence comes from my real estate services to a great many Buyers and Sellers, and their recommendations to others that result in repeat and referral business that keeps me productive and successful.

As a full service Juno Beach, Jupiter, North Palm Beach, Palm Beach Gardens, and Tequesta real estate professional, I work with Buyers, Sellers and Investors in real estate transactions spanning all of the price ranges and property types.

Residential Single Family – My residential single family services connect Buyers with Sellers every day, and I do it with professionalism and a total dedication to my clients. This property type is the majority of my market transactions, but by far not the only one in which I have expertise.

Condominiums – While condominiums are residential, they’re a very different market focus, and I am an expert in evaluating condos and helping Buyers and Sellers to cope with the special financing and homeowner concerns for this property type.

Multi–family – Investors are great clients for me. Multi–family properties are a very unique market. The detailed return on investment and valuation calculations investors need to evaluate properties for rental are second nature to me.
 

Vacant Land – Land is a very special property class. It’s relatively easy to show a gourmet cook a wonderful commercial kitchen in a home and see their eyes light up. It’s more of a challenge to help a Buyer or Seller to realize the potential in a piece of land. I'm the best at it in the Juno Beach, Jupiter, North Palm Beach, Palm Beach Gardens, and Tequesta real estate markets.

Call me at 561-629-3979 or email me to start a discussion of your needs. Or, fill out this quick form and tell me about your property interests and an overview of your needs.