Stressed out at work? Recent studies indicate that a quick vacation could be the key to unwinding: small “mini-breaks” of 24 to 48 hours have been proven to reduce stress and symptoms of heart disease. In fact, studies consistently indicate that spending money on vacations makes us more happy than spending the same money on material objects. It seems that investing in the quality of our lives has long-term health benefits, and more Americans are looking to invest in vacation homes than ever before.
Although most of us begin our search for a lake home or other vacation property with a quick online search, about three-quarters of all real estate investors prefer to interact with a professional Realtor before they commit to a second mortgage. While websites are useful for information gathering purposes, having the chance to talk directly with a knowledgeable real estate professional can help new investors through an important decision-making process.
The process of purchasing a lake home as a rental or vacation property can take anywhere from several weeks to several months: most potential investors examined 10 houses or more before making their decisions. Although the market for investment properties is stable across the United States, buyers looking for vacation properties in larger urban areas — or more popular, warmer vacation spots — may want to be prepared to commit to a mortgage rather quickly, as there could be stiff competition for a limited number of homes or vacation condominiums. Of course, finding inexpensive real estate in overlooked vacation destinations is a sound investment strategy: there are up-and-coming destinations in every region of the United States.
About one-third of buyers who are looking for their dream vacation lake home, mountaintop getaway, or beach front condominium report that they are intending to rent them to other vacationers for part of the year, but taking the time to contract with local management teams could be essential for owners who live more than a few hours away from their vacation homes. Taking care of routine maintenance and cleaning may be a project best left to local caretakers, and of course modern videoconferencing technology can allow offsite owners to visually keep up with their new properties.
If you return to the same vacation spot year after year, it may make great financial sense to invest in a second property. Tired of lugging ski equipment on the airplane? Finding local lake homes and mountain cabins can allow busy travelers to store their boating, hunting, skiing, or fishing equipment onsite. Another benefit to investing in a second home, according to real estate agents across the country, is that vacation homes can be used for family get-togethers, reunions, weddings, and party locales. Everyone wants to be the life of the party, and buying a second home can help keep far-flung families in one another’s lives, despite everyone’s busy lives and packed schedules.
In the event that a vacation home requires renovations, new owners may wish to remain onsite for several weeks to supervise the process. Once repairs are complete and maintenance schedules are devised, property owners may wish to consider installing security cameras on the property. Having the ability to monitor guests and workers who have access to your dream vacation home can allow for further stress reduction: just make sure that one security camera always faces the ocean so you can see the sunsets every day.
there are tax deductions available to prospective home buyers, and although some banks request a larger down payment on a second home’s mortgage, there are a variety of financing options available to home owners and business owners who want to expand their reach. Finding the perfect lake home or vacation retreat can take a bit of researching, but with comprehensive, information websites online and experienced real estate agents on your side, you should be able to narrow down your options in a satisfactory time frame.