Thinking About Buying a Resort Property? Not So Fast. Read About These Serious Drawbacks Before Making The Final Decision

imagesOwning a home in a resort community can be amazing. Whether it’s a vacation home or a full-time residence, the resort lifestyle offers great perks, from beautiful scenery to lots of things to do. Keep in mind, though, that this is not an inexpensive venture.

Purchase Price

Prices in resort areas are commonly higher than homes in other areas. As with any home, the purchase price of a resort home will depend partly on its size, location, and finishes. In a resort area, however, the home’s location and views can be especially significant.

Because resorts are located in some of the world’s most beautiful places, they will generally cost a lot of money, especially for an ocean view, or a view of the mountains. Also, the most desirable homes in a resort area are typically the ones closest to the area’s activities and amenities. The closer you are to a main attraction (such as a beach or ski slope), the higher the purchase price usually is. images-2

Closing Costs

As with any home purchase, before you must also budget for the cost of closing expenses on your resort home. These might include loan fees, escrow and title fees, inspection reports, and transfer taxes. Before making a resort home purchase, consult a real estate professional, title company, or real estate attorney in the area to get an idea of how much to budget for closing costs.

Financing

You’ll need to budget for a monthly mortgage payment. If you’ll use the resort home as a second home, you might be faced with higher mortgage interest rates than those available for a primary residence. Typically, this happens when lenders classify a second home as an “investment property.” Whether this classification is applied to your purchase may depend on how frequently you stay at the home. To know what interest rate is applicable, consult with a lender or two before you buy.

Expenses

In financially preparing to own a resort home, you must also budget for ongoing home-related expenses. As with any home, you will be responsible for the costs of utilities and any and all ongoing maintenance and repair expenses. Depending on the property, you might also take on expenses for things such as gardeners or a pool-cleaning service in good weather, or driveway and walk-clearing services in snowy conditions. images-1

Property Tax

Real property taxes are based on the property’s assessed value, but the amount levied depends on the formula used where the home is located. Find out how much the current taxes for the home are by asking a real estate professional in the area or inquiring with the municipality assessing the tax (most likely the County Assessor’s office). Keep in mind that the value of the home will be reassessed periodically (and likely influenced by the purchase price you pay).

Renting

You might consider making some income from your resort home by renting it out when you are not using it. Talk to a realtor concerning your options. When budgeting, however, don’t overlook the expenses involved with renting. Unless you have the ability to obtain renters on your own, you’ll likely need to pay a portion of the rental rate to a real estate agent or rental agency. You will also incur housekeeping expenses for clean up between renters.

32 thoughts on “Thinking About Buying a Resort Property? Not So Fast. Read About These Serious Drawbacks Before Making The Final Decision

  • December 12, 2016 at 10:40 pm
    Permalink

    We bought a home in Hawaii, and have never had trouble renting it out. I’m not sure why so many owners have trouble renting their vacation homes. Maybe they are purchasing in the wrong spots?

    Reply
    • December 12, 2016 at 10:43 pm
      Permalink

      Hi Bonnie! Yes, unfortunately many buyers purchase a property in a location where they want to, without thinking about what a renter would want. Remember, vacationers want to enjoy the island, or area. I’m sure the property you purchased wasn’t in a secluded area. This is a mistake many buyers make.

      Reply
  • January 7, 2022 at 1:45 am
    Permalink

    Thanks for your post. One other thing is when you are disposing your property all on your own, one of the concerns you need to be mindful of upfront is just how to deal with household inspection accounts. As a FSBO supplier, the key concerning successfully switching your property as well as saving money with real estate agent profits is information. The more you recognize, the smoother your property sales effort might be. One area where this is particularly important is inspection reports.

    Reply
  • January 8, 2022 at 12:28 am
    Permalink

    Something more important is that when evaluating a good on the web electronics store, look for web shops that are consistently updated, keeping up-to-date with the newest products, the top deals, and helpful information on product or service. This will make certain you are getting through a shop that stays over the competition and provide you what you ought to make knowledgeable, well-informed electronics buys. Thanks for the crucial tips I have learned through the blog.

    Reply
  • January 10, 2022 at 12:31 am
    Permalink

    Thanks for the suggestions you have shared here. Something else I would like to talk about is that laptop memory requirements generally rise along with other advancements in the technologies. For instance, as soon as new generations of processors are introduced to the market, there’s usually a related increase in the type demands of both computer memory as well as hard drive room. This is because the program operated by way of these processor chips will inevitably increase in power to leverage the new technological know-how.

    Reply
  • January 10, 2022 at 11:59 pm
    Permalink

    Just desire to say your article is as amazing. The clearness in your post is simply nice and i could assume you are an expert on this subject. Fine with your permission allow me to grab your RSS feed to keep updated with forthcoming post. Thanks a million and please continue the gratifying work.

    Reply
  • January 11, 2022 at 3:53 am
    Permalink

    It’s a pity you don’t have a donate button! I’d most certainly donate to this superb blog! I guess for now i’ll settle for bookmarking and adding your RSS feed to my Google account. I look forward to fresh updates and will talk about this website with my Facebook group. Chat soon!

    Reply
  • January 12, 2022 at 8:17 am
    Permalink

    I have discovered that intelligent real estate agents almost everywhere are getting set to FSBO Advertising. They are recognizing that it’s more than simply placing a sign post in the front place. It’s really with regards to building relationships with these suppliers who at some time will become consumers. So, whenever you give your time and effort to assisting these dealers go it alone — the “Law involving Reciprocity” kicks in. Good blog post.

    Reply
  • January 20, 2022 at 5:00 am
    Permalink

    Having read this I believed it was very informative. I appreciate you spending some time and
    energy to put this article together. I once again find myself personally spending a significant amount of
    time both reading and leaving comments. But so what, it was still worth it!

    My web site: 메이저사이트

    Reply
  • January 22, 2022 at 8:47 am
    Permalink

    “When I initially commented I seem to have clicked on the -Notify me when new comments are added- checkbox and now every time a comment is added I recieve four emails with the exact same comment. Perhaps there is a means you are able to remove me from that service? Appreciate it!”
    https://portal-new-ex.at.ua

    Reply
  • January 24, 2022 at 10:21 am
    Permalink

    Your style is so unique in comparison to other people I’ve read stuff from.
    Many thanks for posting when you have the opportunity,
    Guess I’ll just bookmark this blog.

    Feel free to visit my website – 사설토토

    Reply
  • January 24, 2022 at 9:12 pm
    Permalink

    My spouse and I stumbled over here coming from a different web page and
    thought I might check things out. I like what I see so now i am following you.

    Look forward to looking into your web page repeatedly.

    Feel free to visit my blog post :: 안전놀이터

    Reply
  • January 25, 2022 at 9:39 am
    Permalink

    “Nice post. I learn something totally new and challenging on sites I stumbleupon every day. It’s always exciting to read articles from other writers and practice a little something from their sites.”
    https://world-stati-as.do.am

    Reply
  • January 29, 2022 at 8:07 pm
    Permalink

    “I have to thank you for the efforts you’ve put in writing this site. I’m hoping to view the same high-grade blog posts by you later on as well. In truth, your creative writing abilities has encouraged me to get my very own website now ;)”
    http://girls-israil-prag.gq

    Reply
  • February 8, 2022 at 7:39 am
    Permalink

    Howdy fantastic blog! Does running a blog similar
    to this take a massive amount work? I’ve absolutely no expertise in programming however I was hoping to start
    my own blog in the near future. Anyway, should you have any suggestions or tips for
    new blog owners please share. I know this is off topic however I just wanted to ask.

    Many thanks!

    Stop by my webpage: 메이저사이트

    Reply
  • February 13, 2022 at 10:12 pm
    Permalink

    hello!,I like your writing so a lot! percentage we communicate more about your article on AOL?
    I require an expert in this house to resolve my problem.

    Maybe that’s you! Having a look forward to peer you.

    Also visit my webpage – 정보이용료

    Reply
  • February 26, 2022 at 3:10 pm
    Permalink

    Sweet blog! I found it while browsing on Yahoo News. Do you
    have any tips on how to get listed in Yahoo News?

    I’ve been trying for a while but I never seem to get there!

    Cheers

    my web page: 먹튀검증

    Reply
  • March 7, 2022 at 7:22 am
    Permalink

    hello!,I really like your writing so much! percentage we keep in touch extra approximately your post on AOL?

    I require a specialist on this house to solve my problem.

    May be that is you! Taking a look ahead to look you.

    Here is my web site :: 토토사이트

    Reply
  • March 12, 2022 at 3:23 am
    Permalink

    What i don’t understood is actually how you are no longer actually much more well-appreciated than you may
    be now. You’re very intelligent. You know thus significantly in relation to this matter, made me for
    my part believe it from numerous various angles. Its like men and women are not interested unless it is
    one thing to accomplish with Lady gaga! Your individual stuffs great.
    All the time handle it up!

    Look into my website: 메이저사이트

    Reply
  • March 15, 2022 at 12:38 pm
    Permalink

    Asking questions are genuinely nice thing if you are not
    understanding anything entirely, but this post gives fastidious understanding yet.

    Feel free to surf to my website – 먹튀사이트

    Reply
  • March 21, 2022 at 11:25 pm
    Permalink

    Hi, i read your blog from time to time and i own a similar one and i was just wondering if you get a
    lot of spam responses? If so how do you stop it, any plugin or
    anything you can recommend? I get so much lately it’s driving
    me mad so any help is very much appreciated.

    My homepage: 사설토토

    Reply
  • March 22, 2022 at 12:24 pm
    Permalink

    Hello every one, here every one is sharing these kinds of knowledge, so it’s nice to read this web site,
    and I used to go to see this webpage everyday.

    Feel free to visit my web site – 메이저사이트

    Reply
  • April 10, 2022 at 1:57 am
    Permalink

    What a data of un-ambiguity and preserveness of valuable know-how about
    unexpected emotions.

    Feel free to visit my site – 먹튀검증

    Reply
  • April 12, 2022 at 12:51 am
    Permalink

    I was pretty pleased to discover this great site. I need to to thank you for your time for this particularly fantastic read!! I definitely appreciated every part of it and I have you book marked to see new stuff on your blog.

    Reply

Leave a Reply

Your email address will not be published.