We all have that vacation place we call our “home away from home,” that serene sanctuary we escape to when things get hectic. Wouldn’t it be nice if you actually had a property that you can call your own in that special place?
A vacation home can be a great investment – not just on a personal enjoyment level, but on a financial one as well. This is especially true if you invest in a home in premier master-planned communities like Celebration, Reunion, and ChampionsGate, all of which are close to the Walt Disney World Resort, the world’s most popular theme park.
Here are the questions you will want to ask yourself to see if investing in a vacation home makes sense for you.
Can you afford it?
Buying a property has many financial implications that could impact your entire budget negatively if you’re not careful. In case you can no longer make payments, for example, you can’t expect to sell your vacation home and earn a profit or even break even from the sale, especially in the first few years of ownership.
Create a budget, take the time to research every financial aspect (including tax implications), and be prepared for the expenses. Consult a certified public accountant or financial planner if you need more advice.
Is it worth it?
Let’s say you have the funds to buy a second home – how do you make sure it will be worth it? The location, ease of access, and purpose of your vacation home are critical components of your decision. Plot the travel logistics of your special retreat, and make sure it’s easy to get to. If it’s too far away, you might end up not using it as much as you first thought you would, which means you’re not really getting your money’s worth.
Who will manage it when you’re not there?
Homes require regular monitoring and maintenance, and vacation homes are no different. Do you plan to handle these responsibilities personally? If not, you’ll need to work with a property manager. By working with a property manager, you’ll have the peace of mind knowing that your investment is well-cared for.
Should you rent it out?
Many owners rent out their vacation homes to earn passive income while they’re not using the property. If this is something you want to do, you will need to let your real estate agent know– they will help you determine its feasibility and help you find a property that would make a good rental.
Learn the local rental rates, as well as the rules and regulations that govern rental properties (e.g. termination and eviction rules, tenant rights, etc.) for that particular area. Aside from real estate agents, property managers are another excellent source of information on the subject.
If you are interested in buying a vacation home or investing in a vacation rental in Central Florida, please get in touch with Better Homes & Gardens Real Estate Services, Inc. We will provide you with the real estate expertise you need. Contact us at 863-294-7000 or brad(at)bydesignre(dotted)com.