Buying a vacation home for investment may be a great idea in these troubled economic times. Be certain to give location thoughtful consideration. You may pay more initially for a great location, but think things through and you could recover those extra dollars spent for a tropical location. You needed venture beyond the United States to acquire tropical vacations homes. The real property laws of countries outside the United States can be complex and issues of clear title can be overwhelming. As a practical matter, in many countries, foreigners cannot own real property. So keep your investment in the United States.
Owning a vacation home in a desirable tourist spot has the potential to make the property pay for itself by listing it on the vacation rental market. When you aren’t using it, rental income can offset those mortgage payments, maintenance costs, and property taxes!
Due to the current recession/depression, there are some real bargains awaiting you in the market.
There are also financial risks so stay within your means. I urge you to consult an experienced financial advisor to help you assess the risk/benefit of purchasing a vacation home. Arrange an appointment with your banker to get your mortgage pre-approved. This will posture you to act swiftly when you locate the right property.
Now if you are planning to rent a vacation home in your tropical destination, you don’t have the same concerns that we have discussed earlier. Your main goal is to locate a property in the destination of choice that meets your budget and your needs. I’ve mentioned in other articles that I’ve written to broaden your search by using the following terms: holiday rentals, self-catering rentals, holiday cottages, tourist rentals, agriturism (in Italy), ferienwohnungen (in Germany) and gites (in France). These terms will give you more hits than vacation rental or vacation home.
Bali is always an excellent choice for a tropical vacation. The Balinese are well versed in providing the accommodations most Westerners expect and then some. Bali is the the poster child for tropical destinations. Thailand is great as well. Both destinations offer Western friendly accommodations, gorgeous beaches, friendly people and incredible scenery. There are countless leisure pursuits such as golf, tennis, swimming, diving, snorkeling, sailing and shopping to name but a few.
Don’t overlook Florida and the Keys. These are domestic destinations to be sure, but as tropical as any Caribbean or Southeast Asian destination. Domestic fares are significantly lower than international fares and the economic crisis has blunted tourism in the region. You can be assured of lower costs for accommodations as a result. There are real travel bargains all along the Gulf Coast. Texas, Louisiana, Mississippi and Alabama are great tropical spots in addition to Florida, which we’ve already mentioned. Wherever you decide to travel, do your homework. Thorough research can spare you a lot of unnecessary grief when you arrive at your destination.
If you are buying or renting a tropical vacation home, I hope this article has helped you in some small way.