Knowledge is Power: Buying a Vacation Home

by autopiloteditor on April 12, 2011

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Without a doubt you’ve read lately in newspapers or online that if you were or are thinking of purchasing a vacation home – now is the time. As house prices are dropping the getaway home you’ve always dreamed of seems much more affordable now. The median price compared to last year for vacation homes has dropped by 11.2% according the National Association of Realtors. If you’re in the market for a vacation home, be it a beach house or lodge in the countryside, there are some things you should know that will assist you in finding your escape stay.

Yes, it is a good time to buy your vacation home. As we mentioned above, the prices for vacation homes are still low but most economist think that the prices may have hit rock bottom and we could see a rise in the prices very soon.  Houses in Palm Beach and South Carolina have seen increases last year and as Mrytle Beach real estate agent Rod Smith states “Now prices are starting to move up”.

When searching for a vacation property keep in mind that although you’ll want to stay there forever – you’re probably not. A better option would be rent out your vacation property when you’re not using it, be it selling time shares or renting it out to travelers. A home’s rental potential could also have effects on its resale value. Not all homes can be rented either so  be sure to check with the homeowners association or township when viewing a property.
Having said that your vacation home could also double for some rental income, Chrisine Karpinski of states that the average vacation home only rents our for 17 weeks a year.  Also keep in mind that the property will need to be maintained and managed which your should also consider when searching for a home.  Be sure to ask your real estate agent for a history of the properties rental dates and rates so that you get a good idea of what you can expect.

For more tips and information on purchasing a vacation home we recommend you check out our source here.

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