Smart Buyer – Tips and Advice When Buying Vacation Homes
Our property expert handpicks some of the best vacation properties to invest before you make the great leap!
Shopping for vacation homes? Take heed in some sound advice before you part cash. Our property expert sheds light on this matter…
Think about beachfront villas, ski chalets and mountain lodges. Vacation homes are a place of residence other than the owner’s primary residence that is used for recreational purposes. Often during summers and holiday seasons, these homes have the highest occupancy. Due to the short-term usage, many owners place their homes under rental management to benefit on their investment all year round.
Vacation homes are often chosen for their recreational and leisure activities, however when buying a vacation home, the following factors make a key decision:
- Location – back in the ’80s and ’90s majority of the homeowners purchase properties within acceptable proximity to their primary residences. Either by driving distance or short domestic flight. With globalisation comes migration, and in today’s vacation home environment investors cross continents to acquire their dream homes, East meets West in most cases. Location is the most important aspect when purchasing a vacation home from a commercial and residential point of view: does the location offer convenient connectivity? Is there sufficient infrastructure? What is the commuting time to the nearest airport? Which recreational activities are available? And…what can we expect in the future?
2. The season – Vacation homes in Niseko, Japan will attract visitors in a different calendar period than vacation homes in Rhode Island, New York. When purchasing a vacation home consider which seasons will accommodate and match with your preference. You may say that vacation homes are directly linked with the weather conditions and climate – investors that live in colder climates will prefer a vacation home that offers them a warm welcome. The opposite is for investors who live in tropical or hot climates, they often seek for some contrast and cooler temperatures.
3. Nature and scenery – whether you look for oceanfront, mountains or beaches, everybody is looking for that “vacation” sentiment. This is a very subjective aspect of vacation homes and often the underlying trigger to your location preference. A retreat where your inner self feels most comfortable.
4. Rentability – Due to online connectivity, vacation homes gained global popularity offering accessibility to millions of travellers annually. When purchasing a vacation home for the investment it’s important to draw a competitive landscape: Which homes are in my vicinity, and what kind of rental and hospitality services do they offer? Is there a demand or potential in this location? Which seasons will provide me with the highest occupancy and how can I accommodate those travellers? The good part about rentability is, that demand and reputation can increase your rental return. Get listing alerts from eXp Realty to be on top of the newest properties.
5. Rental management – As a vacation homeowner you will not be able to manage your property on a weekly or even monthly basis, therefore it’s important that you are associated with a reputable rental management company “slash” hospitality operator. Managing rentals only is not sufficient, providing upper hospitality is the key to success. In many markets, boutique operators have created niche market positioning that will benefit your investment. This means that you do not always have to sign up with the largest operator, by rather with the best operator. Keep in mind that the rental management company becomes your business card – and will be the first line of contact of communication between the client and your home, maintain frequent communication between you and the operator and learn.
With a one-of-a-kind interior – Celadon Villa is perfect for a family retreat. Surrounded by
islands, the outdoor infinity pool is wrapped around the living area, giving the sunken
sitting area a cosy atmosphere. Spacious in a contemporary design Celadon gives an
enchanted feeling due to its spectacular views over the horizon. More advice on finding your perfect vacation home here.