Top Tips For Buying A Vacation Home
Reasons for buying a second home vary, from recreation and vacation enjoyment to investment and development to retirement planning. With homebuyers enjoying an advantage in many markets, now may be the time to buy that second home. Whether you're dreaming of paradise or profit, follow these steps for a smart investment:
Focus on areas with steady appreciation rates. Do look at a second home as an investment and consider areas where homes are going to appreciate. In Summit County, across all property types (homes, condo, townhomes, and duplexes), investment rates are strong.
What will you do with your home when you're not there? Before you decide to buy a vacation home, it’s important to ask yourself whether or not you’ll take advantage of the home. Will you be able to visit your vacation home monthly? Quarterly? Annually? Will you rent your vacation home while you’re unable to take advantage of it? Will you want help managing the home while you're away?
Understand the Tax Ins and Outs. Savvy tax planning can make a difference in your return on the property. Tax implications for second homes can vary significantly based on your financial situation and whether or not you plan to rent out the property. Keep these in mind when figuring the impact on your taxes.
What will you do with your home when you're not there? Before you decide to buy a vacation home, it’s important to ask yourself whether or not you’ll take advantage of the home. Will you be able to visit your vacation home monthly? Quarterly? Annually? Will you rent your vacation home while you’re unable to take advantage of it? Will you want help managing the home while you're away?
Understand the Tax Ins and Outs. Savvy tax planning can make a difference in your return on the property. Tax implications for second homes can vary significantly based on your financial situation and whether or not you plan to rent out the property. Keep these in mind when figuring the impact on your taxes.
Know what to look for in a second home.
Once you have a good idea of your goals around a second home, it comes down to homework and scouting for the right property in the right location.
- Try it out first. When assessing location, particularly for a vacation home in an area you’re not familiar with, renting for at least one stay is always a good first step.
- Talk to the locals. Even if you’ve been vacationing in the same area for years, getting to know the place from a local perspective is important before buying a home there. Talk to our BreckLiving Real Estate Agents and ask them what they like about the area, how it’s changing, what types of people are moving there and what it’s like off-season.
- Look at the comps. To help gauge whether the property is a good investment, let us help you review other home sales in the community to examine what the track record is on resale values of similar properties. Curious about selling your property? Ask us TODAY to complete a comprehensive comparable of homes in the area to estimate your value, and get a discount on selling commissions!
- Know the rules of renting. If you plan to rent the property, let us help you with that additional research. For example: some sub divisions don't allow vacation rentals, some areas only allow for rentals to locals, and some areas are deed restricted. We can help you sort that out.
- Work with an experienced agent. A seasoned real estate agent can help you weigh your criteria and make all the difference in a second home purchase. Beyond the sale, a good agent will stay in contact and help you. This is particularly important for homeowners who may not live near the property.