Buying a vacation home or condo can mean enjoying time and making memories with your family for generations. While having a special place for summer holidays and other special times sounds good in theory, it’s wise to ask: Is a vacation home a good investment?
For Arizonans, the property could be near Phoenix’s world-class golf courses and vibrant culture; Scottsdale’s amazing spas; the red rocks and stargazing of Sedona; the majesty of Saguaro National Park; or the world-famous Grand Canyon. With so many offerings, deciding to buy an Arizona vacation property may seem like a good idea. However, there are important things to consider before signing your purchase contract:
Location and Lifestyle
When deciding whether a vacation home is a good purchase, it is important to consider how much time you want to spend at one location. If your family values yearly visits to the same destination a vacation home may be right for you, but if you like variety, purchasing a place that won’t be frequently used may not be worth the cost. Additionally, you will want to think about how far away the property is from your home and travel expenses to and from the location.
Lifestyle and the Future
Your may also change. For example, a third-floor condo that was great for a young family, may end up being too small and inconvenient to access as time goes on. On the other hand, if you predict that your chosen family property will be ideal for everyone for years to come, purchasing may be something to contemplate.
Costs and Maintenance
When considering a real estate purchase, it is always necessary to consider if you are getting your money’s worth and if you can realistically keep up with payments, maintenance, and insurance expenses. Some properties can be so appealing that it’s hard to walk away, but no investment is worth it if you can’t afford what it takes to enjoy ownership. Further, if you plan on taking out a loan, you need to investigate your mortgage lending options carefully. Depending on your debt to income ratio, some lenders may be reluctant to extend a loan for a second home.
Consult a Licensed Real Estate Agent and Attorney
When investigating any real estate venture, you need to consult with an experienced, licensed real estate agent who can give you an accurate picture of the market, the property’s fitness, and the area. Your real estate attorney will provide you with critical advice about the legal implications of offer and acceptance, disclosure, purchase contracts, and other vital matters.
Attorney Laura B. Bramnick is an experienced Arizona real estate attorney who has the expertise to help you evaluate your vacation property options and protect your interests at every stage of the transaction. If you are seeking an exceptional, client-driven real estate lawyer in Scottsdale, Phoenix, Sedona and throughout the state of Arizona, contact Laura B. Bramnick to schedule your consultation.