What does owning a vacation property entail?
Owning a vacation home is becoming a more widely accepted way to afford a luxury vacation get-away at an affordable cost. Through creative real estate ownership ideas, it is possible to own beautiful and luxurious fully furnished holiday homes through a combination of different financial mechanisms that allow the property owners to both enjoy the use of the vacation home and make some money.
Usually, a number of people get together in order to raise the capital to purchase the vacation property. Investors make a single payment to purchase the property jointly and thereafter they make contributions on a yearly basis for the maintenance of the property. The owners then rotate the times in the year where they can get to enjoy the use of the vacation property.
Types of properties owned
Condos are single unit property titles built on a piece of land that can be jointly owned. A condo owner can own a particular unit while different owners get to own different condo units within a building. The land that the condos sit on is however either owned jointly by the condo owners or by a different property developer.
Condos usually share common areas such as swimming pools, gyms, hallways etc. that any of the condo owners can own. A home owners association, that comprises of the different property owners makes rules and collects fees in order to maintain the standards of the whole property.
A townhouse is a usually a single story or multi-story house that is joined to other houses by a common side by side wall. Unlike with condos, the townhouse owners own both the building and the land where the house is built.
Townhouse owners usually have to pay property taxes on the unit they own. Like with condos, townhouses sometimes also have home owners associations to collect fees to manage common areas and create rules for the common good of all the townhouses in an area.
Commonly known as co-ops, these properties can have complex ownership characteristics. The title to all the land and property is in the hands of different owners according to their level of investment. The owners purchase stock in the co-op and are considered shareholders and not property owners.
What to consider before buying a vacation home
Before you invest in the property, make sure that you love the property by first getting to experience the property as a vacation home.
If you intend to use the vacation home for a lifetime, ensure that the facility can evolve with your changing lifestyle as you mature in age.
While you are on holiday at the vacation home, inquire from other property owners what it’s like to own the property.
As you decide if the property is the right thing for you, you need to understand exactly what you are investing in.
Ask and clarify anything that you do not understand, each property could have different terms.
Once you decide to take the process to the next step, read the property documents carefully before you decide to invest in the property.
Inspect the property that you want to purchase and ensure that you are agreeable with the management of the property.
Benefit of investing in a vacation home
If you have a regular budget for yearly vacations, it would be a good idea to think about getting a vacation home. Through a vacation club, where several different vacation investors come together to own a property, you could save up to 70% on your vacation expenditure.
Most vacation homes will be able to pay for themselves within 5 years and thereafter, it will all be money in your pocket. Apart from the savings and additional income, most timeshare vacation home owners cite the flexibility, convenience and ownership as great additional benefits.
Other benefits of vacation home ownership include:
· Predictability of knowing that you won’t miss accommodation to one of your favorite holiday spots.
· Easier to plan your holidays because you don’t have to spend time booking a place or organizing rooms for family and friends.
· Enjoy stability in prices from year to year unlike with hotels and other vacation accommodation.
· It is easier to invest in luxury amenities to suit your comfort because you can use the same amenities every time you are on holiday,
· The comfort of your own home gives you freedom to enjoy your hard work,
· You can benefit from high quality service because the staff at the vacation home can be on your joint payroll.
How you can find other vacation owners with similar goals to invest with
Most real estate developers in vacation locales create packages for those willing to acquire a vacation homes. You could also ask friends and your extended family to participate in joint ownership of a vacation property.
David Kuttner is a photographer, writer, and a father. When he’s not busy writing, he’s most likely spending time with his wife and their two mischievous dogs: Lily and Bart. Visit his blog for more information.