Location, Budget, and Amenities: 6 Key Considerations When Buying a Holiday Home
Purchasing a holiday home can be an exciting prospect for many people, offering a retreat from the hustle and bustle of everyday life and a place to create cherished memories with family and friends. However, considering so many factors, it’s crucial to carefully weigh your options before making such a significant investment.
This article will explore six key considerations when buying a holiday home. The list includes location, budget, and amenities to help you make an informed decision and find the perfect vacation getaway.
Location is perhaps the most crucial factor to consider when buying a resort property. You’ll want to choose a serene and relaxing location with plenty of local amenities and attractions to keep you entertained. Consider whether you want to be close to the beach, the mountains, or a bustling city center. It’s also worth researching the local weather patterns and any seasonal events or festivals that may attract tourists.
Choosing a popular location with tourists can help maximize your rental income if you plan on renting out your resort property. When choosing a location, visit the area in person to get a feel for the local community and ensure that it meets your needs and expectations.
Determining how much you can spend on a vacation property is essential, including the initial purchase price, ongoing maintenance costs, and any property taxes or homeowners’ association fees. Also, remember that a resort property is a long-term investment, so planning for any unexpected expenses is necessary. It’s also worth exploring financing options, such as a second mortgage or home equity loan, to help cover the upfront costs.
According to a recent report published by Forbes, the median price of a vacation home in the United States was $429,000 in 2022. Additionally, the report found that approximately 55% of individuals who purchase vacation homes intend to generate income from their investments.
While these numbers may vary depending on the location and individual circumstances, it’s crucial to clearly understand your budget before searching for a resort property.
You’ll want to ensure that your property has all the necessary features to make your stay comfortable and enjoyable. It may include amenities such as a fully equipped kitchen, comfortable furnishings, and modern appliances. If you plan on renting out your weekend getaway, amenities such as a swimming pool or hot tub can also help attract guests and increase rental income.
According to Conwy Lodge Park, the demand for contemporary holiday homes and their prices are rising. In addition, the holiday homes, such as those offered by the source, often come equipped with a wide range of amenities to enhance your vacation experience.
These homes typically feature high-end finishes and modern conveniences, including central heating and air conditioning, smart home technology, and premium audiovisual systems.
When considering amenities, it’s crucial to think about your specific needs and preferences. For example, if you plan on using your weekend getaway primarily for relaxation and quiet time, amenities, like a private garden or outdoor seating area, may be a top priority. On the other hand, a large kitchen and dining area may be more necessary if you plan on using your property for entertaining guests.
Carefully evaluate your options and prioritize the amenities best suit your lifestyle and vacation needs.
4. Rental Potential
When buying a weekend getaway, it’s essential to consider the property’s rental potential, especially if you plan to rent it out when you’re not using it. The rental market can fluctuate, so it’s crucial to research the area’s demand and average rental rates before purchasing.
According to a recent report by Skyquest, In 2021, the size of the global vacation rental market was estimated to be worth USD 74.64 billion. The market is expected to experience significant growth in the coming years, with a projected value of USD 119 billion by 2030. It represents a compound annual growth rate (CAGR) of 5.3% between 2023 and 2030.
However, some locations and property types have higher rental potential than others. For example, properties near popular tourist destinations or events tend to have higher occupancy rates and rental income. Additionally, properties with unique features, such as a waterfront location or a private pool, can attract more guests and generate higher rental income.
5. Insurance and Taxes
You’ll need to ensure that your property is adequately insured against damage or loss, including coverage for natural disasters and liability claims. Additionally, you’ll need to factor in any property taxes or other taxes associated with owning a vacation property.
Regarding insurance, research your options and choose a comprehensive coverage policy for your specific needs. Factors to consider include:
- The property’s location.
- Its age and condition.
- Any additional features or amenities that may require specialized coverage.
Property taxes for the property are major sources of revenue for any country. Similarly, in the US, they contribute significantly towards fiscal revenues. According to the Tax Foundation, property taxes make up the most significant portion of the state and local tax revenue, contributing to 32.2% of total collections across all tax jurisdictions in the 2020 fiscal year.
However, vacation homes often have higher property taxes than primary residences, as they are typically located in areas with higher property values and are subject to additional taxes and fees.
6. Future Plans
When considering buying a weekend getaway, it’s necessary to think about your plans and how they may impact your property’s suitability. For example, suppose you plan to retire to your vacation home. In that case, you may want to choose a location that is easily accessible and offers amenities and services for seniors.
Alternatively, suppose you plan to use your holiday home as an investment property. In that case, you must consider factors such as the local rental market, property management options, and appreciation of property values.
It’s also important to consider any potential changes to your lifestyle or financial situation that may impact your ability to use or maintain your property in the future. For example, if you plan to have children or downsize your living situation, you may need to consider the suitability of your vacation home for these changes.
Buying a holiday home can be an exciting and rewarding investment, but it’s crucial to consider several key factors before purchasing. From location and budget to amenities and rental potential, these considerations can help ensure that your vacation home meets your needs and provides long-term value.
Remember, buying a holiday home is not just a financial decision but also a lifestyle choice. By weighing all the crucial factors and planning, you can find the perfect vacation home that will become a cherished part of your life for years.