Vacation Homes – The 3 Biggest Mistakes People Make When Choosing One (Yes, I Mean You)

Many people reach a point in their life when they are stable enough in their personal and professional life, start a family and want to enjoy their leisure time accordingly. You have a full-time job, just like your spouse. Your kids have reached the age where they can start participating in some of your leisure activities and maybe even having some fun on their own while Mom and Dad are doing something else. This is when you start thinking of a country house, perhaps in or near the area, that offers a variety of activities that you and your family enjoy. However, you start to have doubts. Can I afford it? Will it be safe if it is not busy for a long period of time. Will we all have enough fun in this area to make us want to come back? All pressing questions. If you take into account the 3 most common mistakes people make when buying a vacation home, you can avoid most of them. Read more.

Mistake # 1 – Retailing

If you follow the news at all since 2008, you are aware of the mortgage crisis and the sheer number of foreclosures, short sales and abandoned properties that have cropped up across the country. Why then pay the market price for a property when, with minimal effort, you can get a similar home for a fraction of the price?

What to do instead: Use online resources to learn about foreclosures, real estate auctions, bank-owned property and similar opportunities in the area in question. You will be surprised by the amount of information you can easily find on the Internet and the prices at which properties are sold when they are in trouble for whatever reason. This does not mean that the property is in disrepair (disrepair), although you will want to check it out. This means that the owners or former owners could not cope with the payments and are close to losing the property, or it has been seized (seized) by the bank by that time. Banks do not own property, but lend money and make a profit on the accrued interest. When they don’t, they will accept offers that you might find ridiculously low, provided they withdraw the property from their accounts and return some or all of the money that was lent. Keep in mind that the bank could have received tens of thousands of dollars in loan, even if the loan amount is still close to what it was 10 years ago. In fact, they won’t lose money if they accept a low offer, even if on paper it looks like they did it. Talk to a local who specializes in distressed real estate. They can be invaluable partners when you shop.

Mistake # 2 – Thinking that only you can use the property.

So, you have followed the above suggestions and are now the proud owner of a country house. Your employer gives you three weeks of vacation a year, and from time to time there is a three-day weekend or similar time when you can go and enjoy your property. So for the remaining 40 weeks of the year, you allow it to remain empty, right? Wrong!

What to do instead: If you enjoy relaxing in the area, chances are many others will. In fact, depending on the area, at certain times of the year, you will find local hotels and rentals to be well booked. So why not take advantage of this? You can easily rent a property for a week for the equivalent of a monthly rent. In practice, this means for you, if you play your cards right, is that you get a vacation home for yourself and someone else makes the payments! What’s not to like there? As with the first mistake, it is very important that you have someone local to manage the property and resolve any issues that arise. Find a good partner!

Mistake # 3 – You think you only need 1 vacation home.

So you have a vacation home and you’re done, right? Mission Complete? Why stop at one?

What to do instead: If you’ve noticed, you must have realized that with what we’ve already covered, you can easily and quickly do it over and over again. Find distressed property in another area that you like, buy it, use it when you can, and rent it out the rest of the time. Make sure you choose an area where it will be easy and profitable to rent it out for a week for vacationers, and always work with a local who can find and manage a property for you. You will find that at some point these homes will be fully paid for, faster if you purchased them as described above and the rent money now goes into your pocket instead of paying off the loan. Not only do you own holiday homes in many lovely neighborhoods, but you get paid to own them.

We hope we have given you food for thought. One area we can recommend doing this if you are in the northeastern United States or love to travel there is the Poconos Mountain region in northeastern Pennsylvania. You’ll find year-round activities for just about everyone, skiing, hiking, swimming, fishing, hunting, outdoors in general, NASCAR racing and more. And, of course, there is a large list of problematic real estate objects in which banks are ready to find buyers on any terms.

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