01 Jan Equity Estates Guide to Buying a Luxury Vacation Home
Equity Estates Top Investment Considerations for Purchasing a Vacation Home
Are you considering buying a vacation home? Let us help. Equity Estates has purchased dozens of vacation homes around the globe over the last decade. We have learned through experience exactly what to consider when scouting luxury real estate that will appreciate and be appreciated.
TOP 8 INVESTMENT CONSIDERATIONS FOR PURCHASING A VACATION HOME
1. SEASONALITY OF DESTINATION
From a value standpoint, how many days per year can be enjoyed in this destination? We try to purchase residences which present ideal conditions for at least 3 out of 4 seasons. Year round appeal is king when it comes to long term value.
2. RESIDENCE LOCATION
You’ve picked a destination—now how do you choose the right residence? Look for views and access to amenities, whether it be the ocean, ski trail or main street of restaurants. Sometimes it’s worth paying a little more for a prime location. There are a finite number of top-tier homes, and these homes are easier to sell in any market.
3. LONG-TERM APPEAL
Will this destination and residence appeal to you ten years from now? Are there activities you and your loved ones would enjoy as you and your family age?
4. GETTING THERE
Airlift is another key factor we assess. How many airlines service the market, and from where do they originate? Airlines dropping and changing plane schedules can kill a resort destination. As important to consider is the ease of getting to the residence, unless you intentionally want to be off the beaten path and potentially off the grid.
5. AMENITY AND RESORT ACCESS
The homes which appreciate the most have an increasingly attractive draw of activities and amenities. If you buy outside a community, you will need to establish relationships to replace what you get inside a community – and safety should be considered first.
6. COST TO LEASE
Buy the home which costs the most to lease. This typically correlates with home values, so when it’s time to sell you will garner the most appreciation.
7. PROMOTIONAL INVESTMENT
This often overlooked and sometimes difficult to ascertain key metric could make or break your future investment. How much money is being invested in marketing the area by the local government, chamber of commerce or resort real estate developers. The more activity, the better.
8. LAYOUT AND SIZE OF RESIDENCE
It’s important to find a home which can comfortably accommodate your family and the extended family and friends who undoubtedly will want to join when invited. Entertaining and media spaces are essential for marketability down the line. This will ensure the home is appealing to a wide range of people, and maintain its resale value
ARE YOU READY FOR THE HASSLES THAT COME WITH OWNING A SECOND/VACATION HOME?
- Maintenance surprises, especially on arrival
- Property management
- Property taxes
- Property insurance
- HOA fees
- Storm preparations
- Vendor management
- Liability and property casualty
- SOLE RESPONSIBILITY
Consider this smart vacation home alternative.
Equity Estates offers an alternative for your dream vacations while presenting a sound financial investment in real estate. We deliver all the perks of vacation home ownership without any of the hassles—just like you’d expect at a luxury hotel.
Our portfolio spans the globe, featuring 60+ luxury residences, each valued at $1.5 to $4 million in the most desirable destinations. ‘Appreciating Luxury Residences’ is a tagline we are proud to have earned over the last ten years.
Don’t just take a vacation—Own it. Invest where you play in exclusive travel destinations from Paris to Park City to the gorgeous islands of Turks and Caicos.