6 Questions to ask Before Buying a Recreational Property

6

Questions To Ask Before Buying A Recreational

Property

Owning a recreational property? Now that’s the dream. Wouldn't it be nice to have the option to escape the daily grind and spend time with your loved ones relaxing, reflecting, and having fun on your own vacation property?

Whether you’re looking to be closer to nature with a summer cabin or a lake house, want to go big with a villa or a holiday mansion, or you’re keen on having vacant land for your outdoor hobbies, buying a recreational property is a considerable investment and a major life decision that has to be thoroughly considered. We understand what’s at stake here, so here are six questions you should ask yourself first before you say ‘yes’ to the vacation property of your dreams.

1 WHAT IS MY GOAL WITH THE PROPERTY?

The most important thing to pin down first is your intention for buying. What will you do with the recreational property? Do you intend to keep it for personal use? Or since you’ll only be visiting occasionally and the property’s going to be empty for most of the year, are you thinking of renting it out for extra income? Knowing your objective will dictate what factors you should weigh in your purchase

If you intend to keep it for your own use, it’ll help save you money in the long run because you can opt to spend vacations there instead of booking a hotel. Just make sure to think about your and your family’s favorite recreational activities since this will most likely dictate the type of property you’ll buy. For example, if your household loves lounging around the beach instead of going into the woods, best to get a beach house rather than a forest cottage.

On the other hand, if diversifying your assets and creating a passive stream of income is your primary goal, then you’ll have to build a recreational rental property that can welcome all kinds of guests. With this, year-round maintenance and management are essential for the upkeep of your business.

2 WHERE DO I WANT IT TO BE?

While we’ve briefly discussed this in the previous question, we want to stress how crucial it is to think about location Apart from the experience, consider how secluded you want your property to be. Some prefer quietness in a cabin away from the city, while others would rather have it near establishments like hospitals, supermarkets, and convenience stores.

Additionally, you may want to factor in ease of transportation. Will you be commuting, driving, or is it okay for you to fly out every time you visit your vacation home?

3 DO I INTEND TO SPLIT THE OWNERSHIP?

Sharing ownership of a recreational property with your friends or relatives can help lighten the load since you’ll have them as co-owners to carry the costs and responsibilities with you. However, before entering such an arrangement, it’s advisable to get a real estate lawyer to create a legally binding contract that will hold all parties equally accountable regarding expenses, upkeep, and other responsibilities.

AM I PREPARED TO TAKE ON MORE RESPONSIBILITIES?

Double the home, double the responsibilities. While you won’t be using your recreational property as often as your main residence, maintaining it will take the same if not more amount of time and effort. To build a safe and secure vacation home, installing security cameras and reinforced door locks are a must so you can have peace of mind You can also hire a caretaker to look after your place when you aren’t there.

Now let’s talk about money. Without a doubt, having a second home could get quite expensive. Think about the mortgage, property taxes, utility bills, furnishings, caretaker’s salary (should you decide to hire one), routine maintenance costs, and emergency expenses these are items that you have to add to your budget once you buy a recreational property. So, better check if your financial capacity can cover these

5 CAN I GET INSURANCE FOR THE PROPERTY?

There are all kinds of recreational properties out there, like cottages and boathouses. But due to their more experiential nature, it’s not as easy or straightforward to get them insured as a typical residential home. If you can get it insured at all, it may come at a hefty price. Contact a local insurance broker who specializes in your property type for more holistic insurance coverage.

6 WHEN’S A GOOD TIME TO BUY?

There’s no single answer for this one. Although you can check how the economy and the housing market are going for indicators, the only good time to buy is when you’re ready for it. As we said, it’s a huge investment money, effort, and time-wise. Don’t make hasty decisions just because you saw a cabin that fits your budget. If it will be a family property, get them involved. And in all cases, it’s best to connect with a real estate agent to guide you in your search.

After answering these questions, you’ll have a good idea if buying a recreational property is right for you or if you still need time to prepare for it Buying a recreational property is definitely the dream for many, but it’s a big commitment. You need to make sure that you are financially and mentally prepared for this endeavor.

Need additional guidance on buying a recreational property? Let’s have a chat! Call us at 434-531-0817 or send us an email at contact@yesrealtypartners.com.