If you are in the market for a vacation home, congratulations! It’s great to know some of us are doing well in these troubled economic times.
As with any purchase of real property, location is key. However, because this is a vacation home purchase, there are additional considerations. You want to be certain that its location affords you the opportunity to pursue your favorite leisure time activities. In short, don’t buy beachfront property if your favorite pass time is fly-fishing!
That said; keep a “Plan B” in the back of your mind. If you buy near a popular tourist destination, you will have the option to use the home as a vacation rental if your financial circumstances take a turn for the worst. Alternatively, if you get bored, you will be in a better position to do a “house swap” and gain the option of spending some of your leisure time elsewhere.
This is, without a doubt, a great time to purchase a vacation home. The real estate market is under pressure. There are many motivated sellers and you should be prepared to take advantage of this scenario. I urge you to meet with your banker or financial institution and get your mortgage pre-approved. This allows you to move quickly when you locate the right property.
Do not limit your search to real estate brokers! You should contact banks in the area you are targeting. They probably have bank owned property due to foreclosures. Purchasing bank owned property often carries less risk. Bank owned properties are often a better bargain and the sale will go much smoother because all the title work will have been completed. You should also make certain that you explore properties for sale by the owner. That is to say, properties not listed with a broker.
Foreclosures are another option but I urge you to team up with a good attorney. It would not be a bad idea to have a working relationship with a contractor who can assess the structural integrity of the property. There are bargains in foreclosures but pitfalls as well. You will need expert assistance to avoid the pitfalls.
Stay within your financial means. If the housing bubble taught us anything, it taught us that just because a financial institution approves your loan, it doesn’t mean you can afford it! Consult an experienced financial advisor if you have any concerns regarding your financial health.
So let’s summarize the points we’ve covered:
*Choose a viable location that suits your interests and leisure pursuits
*Select a property that allows you options in a financial crisis
*Be prepared to act quickly when you locate your dream home by getting pre-approval
*Explore bank owned properties, foreclosures and properties for sale by owner
*Confirm your financial health with an experienced financial advisor
I hope this article helps you in your search for a vacation home and that it will give you some new insights to consider as you move forward with your plans. Good luck and happy hunting!