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  • How To Justify Buying A Vacation Home

    May 4, 2017
  • Buying A Vacation Home

    Buying a vacation home could be expensive but if you rent it out and do a good job of managing it you could end up making a nice profit. Even if you end up breaking even, it could still be a worthwhile investment. Here’s how…

     

    Choose A Good Location

    Make sure you buy a vacation home somewhere that you and your family enjoy vacationing. This way you can use it yourself and save money by not having to spend money on expensive hotels. If you buy a vacation home in a highly sought after destination, your chances of making money will be higher and will be easier to sell if you ever choose to do so.

     

    Buying A rental home in Orlando, FL for instance is a good idea not only because of 65,000,000 tourists a year visit Central FL, but also because it’s a great place to vacation. Orlando vacationers enjoy world famous attractions like Disney World, Universal Studios and countless others. For those who don’t like the attractions Central Florida has world class golf courses, nearby beaches, boating, fishing and pretty much anything you want that doesn’t require snow or mountains.

     

    Determine How Much You Can Afford To Lose

    Let’s face it… owning a vacation home is a luxury, even if you intend to rent it out for a profit. Markets shift, the economy goes up and down, and sometimes there will be seasons that are slower than others. That’s why you need to figure out how much money you can afford to lose each month. If your rental property sits empty for 2 or 3 months will you be able to keep making the payments or will you be in risk of falling behind and maybe even foreclosure?

     

    Buy Within Your Budget

    You should only be looking at Orlando vacation homes that fit into your budget. Unless you’re paying cash for you home you’ll have to get a mortgage. You’ll have to consider what type of mortgage you want such as a 15 or 30 year mortgage, as well as fees charged by the lender. You also need to consider how much work or repairs a home needs, such as drywall, plumbing, or roofing.

    You should plan on having at least twenty percent of the purchase price as a down payment. Talk with several lenders to see who can offer you the best rates. Lending Tree and PNC mortgage are 2 companies that provide financing on vacation homes. Make sure to look at all the fees and the total cost of your loan before you decide on a lender.