Top 5 signs that you shouldnt buy that vacation home

Top 5 Signs That You Shouldn't Buy That Vacation Home

Posted by Dan Moyle on Fri, Aug 23, 2013

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It's always exciting looking at a new potential vacation home, but it's important not to get carried away. No matter how great the price might seem, how much you like the look of the house, or how much the features blow you away, you have to do your due diligence first. There will likely always be similar homes that you can buy that will be just as good and that don't have any serious warning signs. Here are a few examples of warning signs that should make you stay well clear of a potential vacation home.

Unfavorable Local Laws

House Hunters International taught me that laws can vary wildly from jurisdiction to jurisdiction, so it's important to make sure you have this angle covered as well. An example of this problem is if you need to sign legal documents in a foreign language like Spanish. If you don't get a translated copy from a lawyer you trust, you won’t be confident about what you're actually agreeing to, and what laws are governing the purchase in the document. If the agents you're working with are reluctant to go through the translation then this is a bad sign.

Financial Issues

If you're looking to buy a vacation home for personal or renting out purposes abroad, it's important to make sure that you're considering any local financial issues that might be important in that area. For example, the cost of living could be higher or lower depending on the area, and if you're going to take a vacation to that area the economic climate is important to think about when tabulating total costs for your vacation. Factors like taxes, cost of everyday items like gas and groceries, and property values do make a difference when it comes to budgeting and deciding to purchase in that area.

Rental Restrictions

Some areas will have restrictions on short term rentals. Essentially, a property has to be zoned for short term rentals in order to allow you to rent the place out to others. If you try to rent it out for a week or two without it being legal in your area, you might receive penalties. And getting stuck with long-term rental agreements only if you aren't prepared for that eventuality can be a problem.

Bad Local Housing Market

No matter how much you like a neighborhood, if the local market has problems, these problems are probably only going to make your experience go from bad to worse. It's a good idea to check out how other houses in the neighborhood are selling to make sure there are no local problems that the people you are currently dealing with neglected to tell you.

Pricey Damage to the Home

As with your primary residence, you want to search for signs of damage and things that incur major costs. An example of damage to look out for would be termite signs. You can find these signs in any holes or crevices. The smell of sawdust can be a give-away for this problem as well. Research the local area to see if pest infestations are common and always do an inspection. Any signs of mold, mildew, internal, or external structural damage will be definite warning signs that you should stay away from the property. Unless of course the home is way under budget and you have plenty of money left for restoration.

Buying your first home is already stressful, but purchasing a vacation home, especially in a foreign country, is even more difficult. Cover all of your bases first before you seal the deal because the extra time will be worth it in the end.

Sometimes buying a foreclosed home and fixing it up is a way to get into a vacation home at an affordable price. Download the free guide below to see if this is for you!



This is a guest post from Peyton Spencer, a Journalism