Some buyers are getting vacation homes on the cheap, reports CNN Money. Not all destination properties are created equal, however, so buyers should size up their purchases before taking the plunge.
- Ask your local realtor about the supply of available homes now as compared to 6 months prior. If the inventory is shrinking, you might expect home prices to start inching up.
- Study the Bureau of Labor Statistics for job growth numbers in the local area. Labor markets can affect home prices in vacation destinations.
- HomeAway estimates that the average vacation property rents for 19 weeks in a year. Be sure to check the home’s rental history, including dates and rates.
- Properties with nearby tourist attractions typically secure higher rental rates.
- Calculate all expenses — mortgage, property taxes, insurance, homeowner association dues, utilities, maintenance, and marketing or management of the property.
Buyers who are looking for a vacation house and have the financial backing to weather the ups and downs of the rental market can start looking today at HomeAway or by speaking to realtors in local markets.