Buying a Vacation Getaway or Second Home

Have you been dreaming and planning to buy a vacation home someday?  The current market is ripe for vacation homes, especially those home buyers who don’t need income from the sale of a home to make a move.

With home values falling in many markets, a great selection of vacation homes, townhomes and condows for sale are available. With interest rates lower than we’ve seen for years, this may be your window of opportunity to buy a second house or the vacation home of your dreams.

Should you Buy a Vacation Home or Condo?

Here are some issues to consider before you decide on a vacation getaway:

• What is your budget for a second home? Many buyers invest in condos for their home away from home. You’ll usually pay more for a single-family home than a condo, but they also tend to appreciate more than condos.

• Factor in insurance costs. Have you always wanted a seaside bungalow? Living on the water or any other area at risk for natural disasters comes at a cost. Insurance will be more difficult and more expensive to obtain for a stand-alone home than a condo property. A condo homeowners association purchases insurance for all structures within the development, so you’d only be responsible for insuring the contents within your home - an easier and less expensive option.

• Once you buy, what’s your plan? Will you try to recoup some of your investment by renting out your vacation property part of the year? Check condo bylaws to see if there are restrictions on how long renters must stay and/or how often you can rent out your home. If you buy a stand-alone home, chances are you can call your own shots. Are you in it for the long haul? In the current market, property values may be more volatile for condos than for a single-family property. If you decide a condo is your best bet, plan to hold onto it for awhile if you want to profit from your investment.

• Who will look after your property? If you live a distance from your vacation home, take into account both maintenance and security issues. With a condo, your outdoor landscaping and pool will be taken care of by the association, and with lots of neighbors nearby, security will be less of a concern.

• What are you looking for in a vacation home? Do you dream of owning a home in your favorite vacation destination? That alone may narrow your choices. Would you prefer the freedom and privacy a single-family home would offer? Or would you enjoy the amenities available to you in a condo community?

Giving all these issues some careful consideration will help you make the decision about whether a stand-alone home or a condo community is the right choice for you and your family. Then contact a Buyer’s Agent to start your search for your dream vacation home while the market is ripe to buy!

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