So, you have reached your goal of being able to look for a holiday home. After years of saving, and careful planning, you can finally start looking for the perfect beach paradise to suit your family’s needs. But you are not really sure where, exactly, to start.
Should you jump right in and start phoning estate agents or should you spend time considering what you want in a holiday home? Use an instalment calculator before you do either, to calculate your affordability, and read on below for some top tips on how to buy the perfect holiday home.
Location is everything
This might seem fairly obvious, but the very first thing you will need to consider when looking for a holiday home is where it is located. This not only means whether or not it is close to the beach or mountains, but whether it is close to stores that sell basic provisions or to the city centre.
The location of your holiday home can have a direct influence on the price of the property. You might see a small, rustic beach house that is just right but, because of where it is situated, it is out of your price range. You will also need to consider if there is an internet and television connection available in the location, and what the water and electricity situation is like.
When looking at property, it is best to see it as a long-term investment. Don’t only look at what the area looks like and offers now, consider the possible plans for future development in the area.
This could mean the building of a new shopping centre, the introduction of a new road or highway, or even a new office block being constructed. These can either add value to your holiday home or detract from it. This is especially true if you are planning on renting out your holiday home while you are not using it yourself. Prolonged construction in an area can ruin any relaxing atmosphere that you have cultivated, so consider this aspect carefully.
Don’t rush into a purchase
Being on holiday could bring about circumstances that can cloud your judgement. You are in an area for the first time, spending hours relaxing on the beach or hiking through the mountains and this can make you fall in love with an area without considering all the pros and cons first.
Rather then starting the buying process while you are on holiday, you should start by doing the maths. Use an online instalment calculator to calculate your affordability and arm yourself with all the facts before you make a decision. You should wait at least one or two months before returning to the location and looking for a house, as this will allow you to see it out of season, which could change your mind about the house significantly.
Look at your affordability
A holiday home should not be a source of financial stress or unease. It should be a place where you can go to to relax and unwind. This means that you should look at your affordability, which you can do by using a personal loans repayment calculator or instalment calculator online.
You should be able to repay the home loan without having to dip too deep into your savings. Other costs you will need to consider include the acquisition costs, such as a deposit, transfer fees, and conveyancing fees, as well as maintenance, security, insurance, rates, taxes, and utility tariffs in the area. Once you have calculated your entire costs, you can then go about contacting a real estate agent.
Who will manage the property?
A holiday home is usually not based in the same town as the property owner, which means that you will have to carefully think about who will manage and care for your property when you are not using it.
This can be difficult, but it is best remedied by hiring a professional property manager to look after the property. They will conduct regular inspections, deal with the municipality if there are any problems and prepare the house for you when you decide to go on holiday. Rather than spending hours driving back and forth between your properties, a property manager allows you to rest easy in the knowledge that your holiday home is well cared for.
Soak up the sun
Owning a holiday home is a great investment. You have the ability to rent it out when you are not using it or allow your family members to use it for special occasions. Always remember to consider the location first, as well as what the future could hold for the area. You should also look at your affordability well after your holiday is over, so you do not rush into the buying decision. Spend time deciding on a holiday home before making the final choice so that your whole family is happy and on board with the decision.