Things To Keep In Mind Before Buying Vacation Homes

Given the popularity of vacation of vacation homes and beach houses, many people are shifting to new places near the picturesque coastal locations to get a dream home for their family. Vacation homes could be a great idea not just in terms of getting perfect settings for our home, but also from the investment angle. At present, there are many houses for sale in Malibu and you could choose your favorite one from several options available. So here’s what to consider before you start house hunting:

Things To Keep In Mind Before Buying Vacation Homes

1. Choosing The Location: It may sound obvious, but before you start shopping you need to be able to specify why exactly you want this second home. The answer should shape where you look. If the main purpose is for you and your loved ones to gather together and enjoy the house as a family, you’ll need it to be in an area that is easily accessible for everyone, and that offers plenty of activities for different age groups. When you’re viewing the home as an investment property you’ll also care more about projected growth rates of the communities you’re considering, as well as the health of the local economy. One could find placard and posters like Malibu beach houses for sale and then look for the right location accordingly.

2. Rent Before You Purchase: Before you lock yourself in, rent a place in the area you’re considering to be certain you’ll actually enjoy it. Stay for at least two weeks to make sure you don’t grow bored on extended stays. Try to visit in different seasons to understand weather and crowd patterns. For example, you may realize that you hate needing to book a dinner reservation well in advance during the summer busy season, when you’re there to relax. You’ll also learn what part of town you prefer.

3. Budget: Don’t fall into the trap of purchasing a property that is a stretch to afford. Buying a house with too high of monthly carrying costs causes stress, and most people go on vacation to get away from troubles. It also means that if you eventually decide you want to hire someone to manage the place, or care for the yard, there won’t be any wiggle room in your budget to afford it. So if you are looking for a Malibu beach house for sale, make sure that you do not come up with an overblown budget.

4. Know the Tax Implications: Don’t assume you know what the tax consequences of owning that property will be, based on your experience with your primary residence. Second homes can be more complicated. If you are going to rent out the property, you will need to pay income taxes on the rental income you receive. Your property taxes may also run higher than what you pay now, either because the tax rate in the vacation area is higher than where you live, or because its a second home and not a primary residence.

5. Conservative Rental Estimate: Most buyers tend to be overly optimistic about how often they’ll rent out the place. Talk to a local vacation rental agency about how many weeks of the year you can realistically expect demand. For example, even in a winter and summer destination such as Lake Tahoe you can’t expect to fill the place every month of the year.

After completing MA in Marketing from London School of Economics in late 90's, Ellina James chose to work for Marketing Research firms in Europe only.

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