10 Tips To Buy A Perfect Holiday Home
On the outskirts of major metro cities are a number of suburb areas that attract developers and investors alike, with the primary objective of constructing and buying holiday homes, respectively. A growing trend, the holiday home market, is immune to recession and thrives on the surplus funds of high net income groups. Be it quality time with the family, a quick getaway from a hustle and bustle of everyday life, or even turning it into a guest house, purchasing a holiday home has certainly become a lifestyle choice. If owning a holiday home has been on your agenda, here are 10 tips to remember before investing in one.
Decide on a budget
Fix on a budget that includes the total cost of ownership, insurance, and tax in addition to other carrying costs. Despite using your holiday home a select few times in a year, you will still be charged for water, gas, electricity among other maintenance services on a yearly basis. Include this overhead expenditure into your budget to gain a complete understanding of the total costs involved.
Acquaint yourself with the area
Considering it’s your home away from home, orient yourself with the area of choice and gauge whether it would make for an ideal getaway location or not. Since it will be one of the places that you will be spending a lot of time at, in the near future, make sure that the area is suitable and is easily accessible.
Find a location for your holiday home that is relatively close to where you live as it will be convenient to plan a quick getaway. In addition to this, find a home that is near the airport or railway – depending on your preferred mode of travel. Having a ‘home away from home’ which is easily accessible, makes for a pleasant journey.
While getting away from the hustle and bustle is a priority, availability of basic amenities like a general store, a medical store, a petrol pump, restaurants, etc. should be on your radar. Since visiting the holiday home does not require extensive planning, the availability of these basic amenities aid in enhancing your experience.
Check property for structural damage
Check the structure, roof and the surroundings for damage, leaky roofs or damp or weak points. Note down things that will need replacing or repairing and accordingly determine whether these overhead costs can be accommodated into your budget.
Explore the features
Not every holiday home is sold furnished. So it would be wise to consider furnishing your home with fittings, appliances and equipment as required. Decide on how many bedrooms, bathrooms and kitchens you want in your holiday home and accordingly choose. Bear in mind that the cost of these essentials should be included in the budget as well. However, there are holiday homes that are sold with furnishings, like our 8 Nautical Miles project in Alibaug, which has its interiors adorned with elegant fittings complete with housekeeping as well.
Since your holiday home is not your primary residence, you will be subjected to taxes, maintenance costs and other expenses. If you are not likely to use the property often, then allowing it to earn rent for you would be a wise option. When you look at it as a long-term investment, the rent will allow you to offset the costs and build equity.
Competition for location-based choices
Desirable tourist areas translate to high occupancy in all seasons. Scout and find economical destinations for your holiday home. After all, buying a holiday home requires huge expenses and commitment, and that is why planning makes perfect.
Find a property manager
A secondary, but important, expense to consider is management fees. If you do not plan to frequently visit your holiday home, consider hiring a property manager who will look after your home in your absence. Hiring a property manager will ensure quality maintenance of your home, in addition to keeping a watch over short fuses, leaking pipes, etc.
Secure your paradise
Security is another essential inclusion in your budget. If your holiday home will be left unattended for periodic stretches of time, it would be wise to include the cost of a security system and/or security guard to safeguard your home. This will help reduce worrying about the security of the home considerably.
Author is the chief executive officer of Sumer Group. All views expressed are personal.