Make a Smart Decision – Learn How to Buy a Vacation Home!

Many of our clients who are looking for tax certificates need them because they are buying a vacation property. This is a growing trend among hard-working professionals who want to relax in privacy, especially in the current health crisis context. For this reason, we decided to prepare a detailed article with helpful tips on how to buy a vacation home.

First of all, the decision to buy a vacation home must never be made on an impulse. The best way of investing in vacation property is by planning this significant purchase carefully. To own a second property means to have extra responsibilities in terms of:

• Taxes
• Insurance
• Maintenance

10 Helpful Tips for Buying a Vacation Home

Before you consider buying vacation property, think about the likelihood of using it in the middle to long term. Are you likely to spend vacations there 5 or 10 years from now? If the answer is yes, you can start looking for the best vacation house for sale in a suitable place. 

Whether you make a vacation home investment on an estate or you want a detached property, get its tax certificate, which our helpful staff will quickly create for you. Apart from advice we will present below, a key tip on how to buy a vacation home is, be certain that it does not have any delinquent taxes.

These being said, there are things you must do if you want to buy a vacation home:

1. Know Your Budget

Investing in vacation rental property must not stretch your budget too far. Never take the maximum mortgage loan a bank will offer you and never count on the money you may make by renting your vacation house when you are not using it. We are going through uncertain times in all critical aspects: the job market, the lending environment, and the housing market.

2. Consider the Extra Costs

Buying vacation rental property means more than the purchase price. You will also have to pay the real estate agent’s fee, the cost of the tax certificate, and other legal and administrative fees to put the deed in your name. There are also ongoing costs – tax, insurance, repairs and maintenance, and the service fee if you choose a vacation home on an estate managed by an HOA.

3. Buy an Existing House

Some people believe that the best way of investing in vacation property is building a custom house. This is the most expensive and time-consuming option. You may have to deal with restrictive building codes in certain areas or find your plans thwarted by strict HOA rules.

4. Do Not Buy a Timeshare

An important tip for buying vacation property is this: do not choose a timeshare house or apartment. The service fees are very high and selling this type of property is a nightmare, as indicated by an independent consumer rights advocacy organization.

5. Check If It Is a Good Rental Opportunity

Many potential owners consider investing in vacation rental property. They are aware that they will not use it for more than a few weeks each year. Thus, they are trying to get a return on their investment by renting it. If this is what you want to do, make sure that you own a vacation home in a popular area for holidays.

6. Research All Seasons

Here is an extra tip on how to buy a vacation home, which ties with the one above: do not look solely for a summer house. Seek a place for your vacation house where you can also spend the winter and spring holidays, as well.

7. Buy Only Inside the Country

Some people dream of investing in vacation property on the beach of Cancun, Mexico, or in another popular place abroad. Resist this decision – property laws are very sketchy in some countries. For example, in Mexico, as a foreigner, you only lease the land from the state. This means that the lease can be rescinded and you have no right to be present at the respective location, even though your own vacation house stands on it.

8. Be Careful about Joint Property Investments

Love may be blind, but never let it take you as far as buying vacation property together with a partner. Sometimes, relationships turn sour, and one of the parties will have to buy out the other – which may be unfeasible for you at that specific moment.

9. Don’t Look at the House as a Mere Investment

A vacation home investment makes sense if this is not your primary goal. You should be buying vacation property because you want to own a place for spending holidays with your family. The fun and relaxation you’ll have there over the years are the best return on investment you can get.

10. Work with a Local Real Estate Agent

The final tip on how to buy a vacation home is this: always look for a local realtor. They know the best places for sale and the trends in terms of prices and popularity of various neighborhoods.

We Are Ready to Create a Tax Certificate for Your Vacation Home Investment

At CertSimple, you will find a team of knowledgeable specialists who create tax certificates. Whenever you want to buy a vacation home, our family-owned company is ready to help you.

Our offices are in Dallas, TX, Austin, TX, and Houston, TX, but our service area also covers San Antonio, Forth Worth, and nearby areas, including all 254 Texas countries. 

Call us now: 800-806-3639!