Home Away From Home | Agent Tips for Buying a Vacation Property
Does the idea of having a home away from home enchant you? Or have you been looking for a new investment opportunity or revenue stream in the form of an idyllic vacation home? If you have been considering buying a vacation property, you are not alone. There are many reasons why these homes away from home can be both an enchanting getaway opportunity and an excellent investment opportunity, but navigating the process of purchasing a 2nd property can be daunting. For that reason, we enlisted our talented Jameson Sotheby’s International Realty agents to offer some advice and words of wisdom on venturing into the world of vacation homes. Read on to find out more.
“Define your ‘Why?’. Spend more time considering and outlining what lifestyle you want to manifest. What is the one thing you want to have happen.”
—MELINDA N JORDAN
Setting your intentions and finding the purpose of your future vacation home is a crucial first step.
Are you buying for pleasure? Owning a vacation home means owning a little piece of paradise that you don’t have to worry about booking. Whether you enjoy on-the-spot getaways or vacationing on a regular basis, your property is always available and always just a trip away. Additionally, instead of always just being another tourist in unfamiliar territory, you have the ability to put down roots in another community and form new bonds.
Are you buying for financial reasons? Another benefit to owning a 2nd property is its potential as an investment. Owning vacation property can be a very profitable way to diversify one’s portfolio if the proper research is conducted beforehand. In areas with rising tourism or timeless beauty, the property’s value will rise with the housing market and even surpass its market value with careful planning and maintenance.
Set your goals for what purpose this property will serve before starting your search.
“Do your research and test your assumptions. Be critical and go into it with eyes wide open. Yes, it is an investment, but there are carrying costs, and be sure that you are aware of volatility in some of the communities associated with second home ownership.
I’m now licensed in both IL and AZ, and we see many people leaving IL and looking to buy in states like AZ as a primary residence, but some buyers are testing the waters first with a vacation home/investment property. The good news is Arizona inventory has doubled over the last 90 days. Demand for rentals is still high especially for single family homes. These investments offer the opportunity to enjoy longer vacations and/or work remotely in a new place.
If you consult your preferred tax, real estate and mortgage professionals you can make the most of your investment. Please feel free to reach out if I can be helpful in Arizona! ”
—KAREN STROBLE
The chief concern among many when buying a vacation home is financial preparedness.
First, have a conversation with your financial advisor, tax expert, and attorney about the legal and financial prep needed to buy your home. Depending on where your new home is, the buying process can be lengthy, so having a good understanding of what is needed can help speed the process along. Partnering with the right advisors beforehand can make the process much smoother.
The second most important factor in owning vacation property is ensuring that your property is protected and that the home can be regularly maintained, whether this is done by you or by a third party. This will also be crucial to increasing the value of your vacation home. You will likely want to hire a maintenance professional or caretaker who will be able to look out for the property while you are away, prepare it for weather events or changing seasons, and perform regular home maintenance.
“When we were house-hunting for a lakehouse, it was super important for it to be close and easy to get to—or we knew we wouldn’t use it. I think you have to shift mindsets—what is important in your primary home is not necessarily important in a lakehouse.
Our layout needs were completely different and finishes didn’t matter as much as water access, swimability, and location—it was really a focus on things that could not be changed. We also knew it was a very long-term purchase so not only thinking of today’s needs but what they may be as we grow older, our family needs change, etc.
But, one piece of advise still holds: ‘When you know, you know.’”
— JILL HARE
With so many stunning villas, condos, and homes in the Chicagoland are and across the country, picking the perfect place to begin looking for your dream vacation spot can be daunting. We recommend that you start by asking yourself a few key questions to find the type of environment you connect with the most and will love for years to come: Is a waterfront property a must or would you prefer something nestled in the mountains? Do you prefer a warm or cool environment? How far away would you prefer to travel when vacationing?
For investment purposes, it is also beneficial to analyze the current state of the local housing market and tourist appeal. Make sure you are planting roots in a place where vacationers are welcome and the local community is committed to ensuring that the area remains beautiful, featureful, and appealing. Other financial factors, such as taxes and property insurance, should also be factored into your decision.
We hope that these pieces of agent advice will benefit you on your vacation home journey! Remember that our Jameson Sotheby’s International Realty agents are always ready to aid you in looking for your perfect home, and their worldwide connections through Sotheby’s International Realty can help make your dream home a reality, no matter the place.