There’s nothing like owning a house in a prime resort community. Whether you only plan to live there part time or full, the benefits are amazing. However, the costs can certainly add up each month. You’ve still got to pay to maintain the property, even when you aren’t there during most of the year. The price of maintenance and purchasing it in general is going to depend on how big the house is, where exactly it is, the view that it’s got, and how nice the property actually is.
The reason that resort homes cost so much is that they are usually in the most desirable locations of the entire world. Therefore, they are in high demand. And, because renters frequent these spots during the on-seasons, there aren’t all that many available to buy. As such, the low inventory allows for the prices of the for sale properties to skyrocket. What’s more, the closer you are to the recreational activities, and the better the views, the more expensive the property is going to be.
Don’t forget to budget for things like the taxes, the insurance on the property, the utilities each month, maintaining the house, closing fees, and fees to the listing and buyers agents. Commissions are very expensive on secondary homes. Realize that all of these fees are higher when you own a second house. Taxes, insurance, and all of those other things cost more on secondary or vacation homes. While this might seem unfair, it’s the way of the world! You’ve got to accept it.
Don’t forget to budget for gardeners, and cleaning services, especially if you plan to rent the property out while you aren’t there. A realtor or property manger is going to have to show your home to prospective tenants, and you have to make sure it looks nice, or it won’t get rented. So, expect to add property managers, and realtors to your budget. Of course, these won’t be monthly expenses, but you should add them for a few months of the year into your budget, just to be on the safe side.
If you’re purchasing in a gorgeous area, you really should have no trouble at all renting it out. The important thing is to be sure that you can afford the property. Don’t buy it if you can only afford it if it is constantly rented, because there will be times it won’t rent, just like every rental property.