Ignite FB Tracking PixelEverything You Need to Know About Buying a Vacation Property - Barry Macchione

Everything You Need to Know About Buying a Vacation Property

by Barry Macchione 11/26/2018

Owning a second home or vacation home is the dream of many Americans hoping to retire in style. However, owning a second home can also be a huge financial asset and even an added form of income if you’re savvy with the rental process.

What stops most of us from buying a vacation home in our ideal getaway? The funding, of course. But, there are ways to plan ahead to ensure you’ll be ready to take the plunge and purchase a second home when the time comes.

In today’s blog post, we’re going to be talking about the steps to buying a home away from home and give you some tip on how to accomplish this goal in the most financially-sensible way possible.

1.  Location is Key

When you buy a second home, you take on all the responsibilities of homeownership a second time. Since you won’t be around every day to tend to maintenance tasks and troubleshoot problems, you risk discovering costly repairs that could otherwise be avoided.

The most common issues to be concerned with are frozen pipes in northern climates, flooding in coastal areas, and problems like pests that can be found just about anywhere.

Depending on your budget, you might want a home you can drive out to on the weekends, meaning somewhere close by to your primary home. This option also makes it easier to stay up-to-date on home maintenance tasks before they become an issue.

2. Try before you buy

If your ideal vacation home is in an area you’re not totally familiar with, it’s a good idea to visit the neighborhood, talk to the locals, and gain their perspective on the area before buying.

This trip will also give you a sense of what you can expect to spend each time you visit the home. And, if you plan on renting out the property when you aren’t using it, you’ll be able to gauge what a reasonable rent price is for the location.

3. Earning income from your vacation home

Making extra cash from a home that you get to use pretty much whenever you want. Sounds like a dream, right? It can be if done properly, but you’ll need to ensure a few things before you can start earning income from your vacation property.

First, be aware that investment properties often require a larger down payment (typically 30%). Lenders also charge extra interest on homes that will be rented out.

Finally, there are local and state-level laws you’ll need to adhere to. These laws are designed to protect your interests as well as the people who rent out your property, so make sure you use a standard rental agreement for your area.

4. Making an offer

You’ve been here before. Once you’ve decided on a home, it’s time to start crafting your offer and negotiating with the seller’s agent.

However, before you pick a number, do some research on all of the expenses you’ll be paying on the house in question. Property taxes, homeowners association dues, utilities, and any other costs should be on your radar before determining if it’s the right home for your budget.

You’ll also want to be aware of the stipulations of renting out a property you own. This includes reporting income from renting your home to the IRS.


Now that you know the steps you’ll need to take to move toward your goal of buying a vacation home, you’ll be better equipped to make decisions that are best for you and your family’s future.

About the Author

Author
Barry Macchione

Barry Macchione has been a RE/MAX REALTOR® since 2000 and a member of the RE/MAX Hall of Fame since 2010. Each year Barry has achieved the 100% Club for the past 18 years which is an Elite Club of RE/MAX agents. As a member of the East Polk County Association of Realtors since 1997, Barry has extensive real estate transaction experience with hundreds and hundreds of homes sold throughout Central Florida, including Commercial transactions. He is well versed in all aspects of both Seller and Buyer representation and sale of businesses and commercial property as well and achieves his clients goals and takes the stress out of today's real estate market.

Barry's personal interests include Bass Fishing, Boating and Martial Arts.Barry has traveled the country for many years fishing on the B.A.S.S. and FLW Tournament circuits as well as competed locally and was successful in National competition as well. Barry is also a Martial Arts Instructor for the City of Winter Haven Recreation Department. Having studied and trained continuously in the Martial Arts since 1974, he holds a high rank is the art of American Goju-ryu Karate, a Japanese based Karate brought to the United States in the early 1950's. For 44 years, Barry has been a member of the same Martial Arts Organization the U.S.A.G.O. and has competed successfully in hundreds of Martial Arts tournaments and now teaches and trains all ages of students and supports their participation in today's tournaments with them.

Barry enjoys the outdoors whether just boating on the many lakes and rivers of Florida including the Winter Haven Chain of Lakes or occasionally just fishing and capturing the serenity and beauty of the sunsets while on the water. If you are looking for a Real Estate Professional whom has lived in the area for 57 years and knows the area well, Barry is your REALTOR®. Call or text Barry today or check out the many social media channels he has and make contact today, he looks forward to hearing from you!