The December holiday season is fast approaching and people are beginning to plan vacation time. Between applying for leave at work (both for your spouse and yourself), arranging the children, deciding where the dogs go and setting a budget, how do you go about finding a place to visit. Well what about solving the problem and buy a holiday home for your family.
A holiday home can be a place to relax and unwind after a stressful year, here is five tips on buying a holiday home:
Number One – Location
When considering buying a holiday home, location is the most important aspect of your purchase. The reason being is that it needs to be where you want to go. There is no point buying a beach holiday house if you don’t like the water and sun.
Once you have picked a location for your holiday house, you need to research the area and find out the best place to buy. A tip is to look at the area to see how well it is maintained, what facilities are in the area (restaurants, parks, hospitals, ect.) and what the house markets value is in the area.
Number Two – Look To The Future
This step follows onto finding the right location. Visit a real estate agent and find out the forecasted area value over the next few years. Another tip would be to look at the planned developments in the area, as well as the zoning regulations and traffic routes.
A drastic change in traffic routes and massive development plans could turn your place of relaxation into a place you hate. Note, a quieter holiday area is more likely to remain undeveloped than a busier one.
Number Three – Property Survey
Once you have picked a location and a property that you envisage as the perfect holiday getaway, the next step is to survey the land. Have an inspector come and look through the house and over the land. The survey will tell you if there are leaking pipes, a poor structural design and if you can build further on the land. This will give you the decision on whether to buy or look for a better option.
Number Four – Go The Distance
Once the property has passed the inspection, consider the practical implications of owning the house. These implications imply break-ins, burst pipes and unforeseeable problems in the future, and if you are able to attend to these problems.
A holiday house requires constant maintenance security and insurance costs, utility tariffs and you need to either be able to commute their easily or have someone managing the property in your absences.
Number Five – Prepare For Fussy Lenders
When you purchase the house and apply for bond registrations, prepare for a difficult lender. The interest rates are likely to be higher, as this is not your primary residence. When applying for a loan to purchase the house, the debt-to-income ratio needs to stay below thirty-six percent. Therefore, the new mortgage and your current house bond cannot exceed thirty-six percent of your household total gross monthly income.
A holiday house can be a place break away from the stresses of everyday life. The advantage of the house is that you are able to frequently visit the house and have friends over without increasing the cost. Use these five tips to ensure that the purchase will be a successful one.