Vacations may be the ideal time for people to buy real estate, or at least to investigate options for purchasing a second home. When people fall in love with the area they're visiting, their inclination can be to buy land or a home that can be used for future vacations. Recognizing that a vacation can quickly turn into a home -- or land-buying event, the following tips should be followed:
Determine what you can afford. If there is a chance you could investigate a home or land purchase during your vacation, know what you can afford before you leave. Consider a mortgage pre-approval so you won't be as inclined to make an impulse purchase.
Use a realtor who will maximize your time. You likely don't want to spend your entire vacation looking at real estate. Consider working with a realtor who knows the area and your needs well and respects time constraints.
Talk to neighbors. A good indicator that a property is worth buying is if the owners of nearby properties are locals. Word of mouth has likely spread that the property or area is a worthy investment.
Investigate taxes and cost of living. Owning a home is much different financially than renting a home for a week's vacation. Give thought to the area's economics, including property taxes and cost of living indexes.
Decide how often you will use the property. Realistically think through whether you will get your money's worth from the property. To some people, owning a vacation retreat is worth the cost because of its relaxed lifestyle and the potential to become a retirement home.
Understand the profit potential. Although the property may appeal to you from a relaxation standpoint, its potential from an investment standpoint may be even more appealing. Consider that the more distinctive real estate is, the more likely it will appreciate. Also, don't forget that interest on some qualified second home properties is tax deductible.
Vacation is a coveted time to relax and rejuvenate. Doing some real estate prep work can ensure your vacation remains enjoyable.
