Resort Real Estate: Finding the Right Fit
Evaluate your lifestyle and needs before buying in a resort community
By Iyna Bort Caruso, FrontDoor.com |
Published: 8/05/2008
Once you isolate the dominant reason for your home purchase, these tips will help you hone in on the right one:
- Choose a community that fits your lifestyle. There are resort communities designed for any lifestyle, including high-end luxury, waterfront, age 55 and older, active/fitness or golf. These neighborhoods offer access to amenities and activities that cater to specific interests.
- Seek financial advice. A financial planner can help you determine how much home you can afford. The cost of a vacation home goes beyond selling price. You'll need to factor in taxes, utilities, homeowners association fees, club membership fees, not to mention transportation expenses to get you there.
- Create a must-have list. Some people want to be in the heart of the action and close to cultural activities. Others would rather be in the middle of the great outdoors. Jot down a wish list and make sure there's something on it for friends, family and members of your visiting circle.
- Take your time. The biggest mistake people make is "jumping in too quickly," says Craig Venezia, author of Buying a Second Home: Income, Getaway or Retirement (NOLO 2007). "They spend a week on vacation and say, 'I love it. I want to buy here.'" Take off your vacation blinders. Make several trips, rent over a period of time and venture off into the outlying areas. "Don't feel pressured to buy," Venezia advises. "You've got the luxury of time."
- Single family versus condo. Identify the type of home that fits your needs. Both condominiums and town homes offer turn-key living. No lawn mowing, no repair worries, no exterior maintenance. But if you're planning to use your home for entertaining friends and family, the roominess and privacy of a freestanding house might be a smarter choice.
- Do your due diligence. Since real estate is one of the biggest investments you'll ever make, do your homework. Look into the developer's history to see what other properties the company has built. What's the track record? How long has the developer been in business? Strike up some informal chats with other resort owners to find out what insiders really think.
- Side-by-side comparisons. When you've narrowed down your resort contenders, run a side-by-side comparison. Compare square footage, amenities, fees and travel distances. Aesthetics count, too, of course. Take some shots with a digital camera so that candidates are fresh in your mind.
- Think long term. No one has a crystal ball so it's safer to make a purchase decision based on lifestyle and personal benefits than the prospect of a quick turnover. "Take a buy-and-hold strategy," Venezia says. "Look at resort properties that are going to show you the promise of appreciation."
- Resist the urge to impulse buy
- Evaluate your needs and long-term goals
- Get to know the area before buying
- Hire a local real estate agent
- Decide what type of home is right for you
- Shop around for a mortgage
- Calculate additional expenses
- Consider fractional ownership to cut down on costs
- Look into tax benefits
- Rent your home out for extra income
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