Buying a vacation home for investment can be a great idea in these difficult economic times. Be sure to consider shelter location. You can pay more initially for a good place, but think about things and you can get back that extra money spent on a tropical resort. You need adventure outside the US to buy tropical vacation homes. Property laws of countries outside the United States can be complex and key title issues can be challenging. As a practical matter, in many countries, foreigners could not own real property. So keep your investment in the US.
Owning a vacation home in a desired vacation spot has the potential to make you pay real estate by listing it on the vacation rental market. When not in use, rental income can offset those mortgage payments, maintenance costs, and property taxes!
Due to the current recession / depression, there are some real things to expect in the market.
There are also financial risks so stay within your reach. Please consult an experienced financial advisor to help you assess the risk / benefit of buying a vacation home. Make an appointment with your banker to get your pre-approved deposit. This will get you up to speed quickly when locating the right property.
Now if you are thinking of renting a vacation home in your tropical destination, you do not have the same concern that we discussed earlier. Your main goal is to locate a property in the destination of choices that meets your budget and needs. I've mentioned in other articles I've written to broaden your search using the following terms: vacation rentals, self-catering rentals, cottages, holiday homes, farmhouses (in Italy), ferienwohnungen (in Germany) and houses (in France). These terms will give you more hits from home or holiday home.
Bali is always an excellent choice for a tropical vacation. The Balinese are well versed in providing the accommodations that await most of the West and then some. Bali is the poster child for tropical destinations. Thailand is big. Both destinations offer friendly western accommodation, gorgeous beaches, friendly people and incredible scenery. There are plenty of enjoyable leisure activities such as golfing, tennis, swimming, diving, snorkeling, sailing and shopping to name a few.
Don't forget Florida and the Keys. These are domestic destinations to be sure, but they are as tropical as any Caribbean or Southeast Asian destination. Domestic prices are significantly lower than international prices and the economic crisis has affected tourism in the region. You can be assured of lower costs for accommodations as a result. There are real travel deals all over the Gulf Coast. Texas, Louisiana, Mississippi and Alabama are great tropical spots in addition to Florida, as mentioned above. Wherever you decide to travel, make your home. A careful search can save you a lot of unnecessary pain 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.