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8 Things to Consider Before Buying a Vacation Home

A home away from home is always a dream come true. While a beach house or a home near the city’s most famous tourist spot sounds glamorous—and sometimes lucrative—it comes with long-term responsibilities too. From maintenance costs to taxes, here I have broken down important considerations for your dream-life vacation home.

Crime Rate in the Area

It only takes one quick Google search to know if you are moving into a safe neighborhood, so why leave this out? Since you will probably leave your property unoccupied for a significant amount of time, you might want to know the burglary cases in the area.
To check your area’s crime level, you may browse the FBI’s site for Uniform Crime Reports and see what types of offenses have been reported. If you will frequent your property alone or with your little ones, you may want to dig a little more by checking the Department of Justice’s website for a consolidated and comprehensive list of crimes in the area.

Finances

The actual cost of your property goes beyond its market price. You should also factor in the amount of money you need for security, maintenance, and insurance.
Maintenance
Just like your primary home, your vacation house needs regular upkeep too. Your budget should be able to cover both the internal and external surfaces of your property, from roofing and walls to ceiling and furniture. It is best to perform general cleaning and/or repair once a year rather than doing it only when damages become too visible.

  • Insurance
    Getting a property insurance plan is one way to avoid sudden expenses during natural hazards like hurricanes, flood, or fire. Make sure to speak with a trusted insurance company before putting an offer to your ideal vacation home.
  • Property Tax
    According to the Internal Revenue Services, a vacation property is either categorized as personal or a rental property, depending on the days it is rented out. If you decide to rent it out for more than two weeks (in one year), it will be considered as a rental property. Hence, its profits will be taxed as a capital gain.

Location

While a secluded lake house may sound intimate and romantic, it would not sound too ideal if what you need is just a quick getaway after a tiring week. If you plan to visit your vacation home often, your best options are the accessible ones.
In fact, according to the National Association of Realtors (NAR), most buyers looking for vacation homes prefer locations that are in close proximity or just within the driving distance (one to two-hour drive door to door) from their place of residence.

Rental Income Options

If the purpose of your vacation home is to earn extra, you may want to choose a popular destination where the demand for short-term stays is high. Properties near oceans, lakes, or areas with famous recreational parks are a hit for tourists.

Also, check with your real estate agent if vacation rentals are allowed in the area. Some cities prohibit or limit the number of days your property can be rented out. You don’t want to get slapped by hefty fines!

I understand that buying a vacation home can be a dicey investment; let me help you choose a property that you won’t regret. My name is Francis Ambrosio and I have been working with clients to purchase their dream vacation homes. Connect with the Ambrosio Real Estate Team at 727.433.0372 and take the first step towards finding your dream home in Tampa Bay, Florida.