The vacation home is a staple for many families and individuals. It's not just a place to unwind and relax but also a place where you can host guests from all over the world. If you're considering buying your first vacation home, there are some things that you need to consider first. In this article, we'll discuss tips to ensure your investment is worth it.
Why Buy an Apartment for Vacation?
When you are looking for a vacation home, apartment buildings provide several advantages:
- They are cheaper than buying a house, so you can save money and invest in other parts of your life.
- If you rent out your vacation home when you aren't using it, this provides an additional source of income that can help pay the mortgage and other bills. Statista says the average house rent in February 2022 was $1,322. This is good enough for utility bills or savings.
- You can choose an apartment building near your primary residence, so you don't have to travel too far when traveling between two homes during vacations. This reduces costs associated with gas or flights and prevents too much time away from work or family members.
This is especially beneficial for drivers as they are the ones who show the lowest perceived worthiness of travel time, according to an article published in the ScienceDirect journal.
Buy a Land and Build a Vacation Home Instead of Buying One
If you are looking for a vacation home but don't want to spend an arm and a leg on the purchase price, consider building your own. It may seem like more work at first glance, but it can be less expensive than buying a house and, of course, gives you the satisfaction of having built something with your own hands.
Moreover, buying land is also beneficial if you want to build a massive vocational destination business. You can find prime land spread across hundreds of acres and build multiple houses. Additionally, you can also build amusement parks, water parks, mini zoos, and many other things on the land to make it a prime vacation spot. This will allow you to make a living out of your investment.
In addition to being more affordable upfront, there are other benefits:
- You have full control over what goes into the construction process, so it can be customized according to your preferences and needs.
- You get to live in the house while construction is being done.
- Because rentals are scarce during the peak tourist season in many vacation destinations, renting out part or all of your property could help offset some of its cost.
The House Should Have a Dockyard or Terrace
The house should have a dockyard or terrace. No matter what type of home it is, people love having an area where they can relax on the water and enjoy their surroundings in peace.
A dockyard can serve as a place for kids to swim safely away from traffic in your neighborhood. On the other hand, a terrace will give adults privacy while still letting them see their surroundings clearly.
Both dockyard and terrace can give you space to create an additional recreational heaven for your vacation home. For example, outdoor kitchens or outdoor fireplaces are something that people enjoy and are among the latest trends, according to Living Cozy's Outdoor Trends Report 2022. Hence, you can build something like that on the dockyard or terrace and invite your friends or family for quality time.
Research the Neighborhood
Before you start shopping, get to know the neighborhood. Neighborhood plays a vital role in shaping your experience. For example, a study published in the Springer journal confirms that a neighborhood's physical environment and social capital can significantly impact residents' happiness and well-being. Hence, around 61% of US adults have felt the importance of making connections in the neighborhood.
Start your research by checking out the crime rate and public schools. Many local newspaper sites offer this information and other resources such as local economy and amenities.
You should also look at how the neighborhood was built, what kind of architecture surrounds it, and how long people have lived there. This can give you clues about why they chose this place to live in the first place and whether or not there are plans for growth or development in the future.
Finally, don't forget about researching local culture. A lot of what makes an area unique is tied up in its history. Find out if any annual events are happening nearby that might be fun for you right now and into your retirement years later on.
Create and Stick to a Budget
Before you begin the search, you must define your budget and stick to it. You should know how much you can afford and how much of a mortgage payment will be affordable for you. The right home will fit into this picture and help meet your financial goals, but only if you have a good idea.
While creating a budget, consider all the essential things. These can include the following:
- Cost of labor
- Cost of land
- Cost of the amount of customization you need in the house
- Cost of utility connection
- Cost of furniture
- Cost of interior design, etc.
You must consider all these things, especially interior design. Since interiors depend on your likes and preferences, the cost of interior design can vary largely. However, one certain thing is it will cost a lot. According to a study by NAHB, interior finishes, with over 25%, account for the largest chunk of the overall house building cost. Moreover, it is also essential to stick to the budget. You can keep it flexible if you want, but don't go beyond a specific limit you have kept.
Work With a Real Estate Expert
Working with a real estate expert is key when buying a vacation home. There are so many things to consider:
- Where will the property be located?
- How much money do you need to spend?
- What's the best way to get your investment back?
A professional can help you answer these questions and more. They know the market inside and out and can guide you toward properties that are both good investments and great places to hang out on your holidays.
Conclusion
We hope you've found this article helpful. The best way to ensure a smooth home purchase is to do your research, be patient, and trust your gut. Remember that it takes time to find the perfect vacation home, just like it does for anyone else.
