How to Buy a Vacation Home in California
Considering buying a vacation home in sunny California? The Golden State offers many options for second-home buyers, ranging from sun-soaked beach living to outdoorsy mountain retreats, hilly wine country estates, and desert golf course landscapes. It’s a dream for many investors. For high-net-worth individuals (HNWI), making that dream a reality is not only possible but a strategic way to elevate your lifestyle.
With so many options, it can seem overwhelming to know where to start. We’ll explore some of the best locations and what each has to offer, factors to consider and alternatives to traditional vacation home ownership.
Why California for a Vacation Home?
With some of the nation’s most appealing beaches, shopping, restaurants, ski resorts, wineries, golf courses, outdoor activities and family-friendly attractions, California has something for everyone interested in owning a vacation home here. Here are some top reasons why California is an ideal destination:
California Lifestyle Benefits
The Californian lifestyle is second to none. The diverse climate means you can easily spend one day skiing in breathtaking Lake Tahoe and then the next relaxing with a glass of velvety wine in Sonoma or Napa Valley. If coastal living sounds more appealing, Southern California’s warm, sunny beaches and lively boardwalks are the epitome of the beach lifestyle. For golf aficionados, the Palm Springs area boasts some of the world’s best golf courses. Families who travel with children will enjoy access to top attractions such as Disney World, Hollywood movie studios, the San Diego Zoo, SeaWorld and much more. If dining, nightlife or watching professional sports are part of your vacation dream home lifestyle, California offers endless top-notch restaurants, entertainment venues and major league teams.
(To get a sense of what vacationing in San Diego is like, explore our guide, Three Ways to Vacation in San Diego!)
Ease of Access to California Vacation Destinations
For vacation homeowners, ease of access is crucial because they can use their homes more often. While owning a vacation home in the Caribbean, Hawaii, or Tuscany has many perks, for U.S.-based travelers, those destinations require long, cumbersome commutes and jet lag. It’s not easy to hop on a flight for a long weekend in Europe or Hawaii compared to California. California’s multiple major airports and hundreds of daily flights mean homeowners can quickly access and spend more time enjoying their dream homes.
No Dealing with Foreign Bureaucracy, Taxes or Currency
Owning a vacation home anywhere comes with challenges, but owning one in a foreign country involves significantly more. For example, homeowners in Mexico’s coastal communities must form a trust with a local bank that must be renewed every 50 years instead of holding the title outright. Dealing with local zoning laws, title transparency concerns, utility companies, insurance, building codes, and other bureaucratic concerns in overseas destinations can mean a lot of stress for the buyer.
High Property Values and Potential Rental Income
According to the California Association of Realtors, demand for California real estate remains high in 2025, including homes as long-term investments and short-term vacation rentals. Given California’s popularity as a vacation destination, those interested in rental income from their second homes may do well here.
Where to Buy a California Vacation Home?
One of the aspects that makes owning a vacation home in California desirable is the number of luxury spots in the region that are perfect for HNWI buyers. You can find like-minded people and take in the stunning beauty of the surrounding landscape from any one of the following locations. Your lifestyle desires will largely determine which communities will appeal the most.
Most luxury properties start at around $5M across the state, with wide fluctuations depending on location, amenities, size and type of property. You can check out the California Association of Realtors’ California Luxury Market Interactive Tool to help you monitor home prices around the state.
The following four regions are not the only desirable places for a California vacation home, but they do offer a vast number of amenities and infrastructure to support a luxurious vacation lifestyle:
Southern California: Classic Beach Towns
The quintessential beach lifestyle is on full display in upscale Southern California communities such as Malibu, San Diego, Laguna Beach, Newport Beach, La Jolla and Santa Barbara. Many of these coastal communities have lively boardwalks along the coast, perfect for walking, jogging, biking, and people watching. Sailing, surfing, whale watching and scuba diving are also part of the coastal lifestyle here. Vacation home prices vary widely across the region, based on the type of home, proximity to the beach, amenities and many other factors.
Lake Tahoe: Mountain Living at Its Finest
Lake Tahoe has appealed to snow enthusiasts for decades, and you’ll find multiple fantastic ski resorts ranging from the iconic Palisades Tahoe (formerly Squaw Valley) in the north to the vast, lakeview Heavenly Ski Resort on the southern end. But Lake Tahoe offers far more than winter snow sports! Those who enjoy trying their luck in a casino have multiple options along Lake Tahoe’s Nevada side, where gambling is legal. Summertime is one of Tahoe’s busiest seasons, with superb hiking, biking, boating, fishing and golfing.
Many luxury homes are in resort communities with easy access to ski resort amenities, but you’ll also find more private retreats scattered in the region’s mountains. The best towns for luxury vacation homes here include Truckee, Tahoe City, Tahoma, Homewood, and Incline Village and South Lake Tahoe on the Nevada side.
The Wine Country: Napa and Sonoma
Living in California’s wine country offers the ultimate in luxurious, pastoral living. Breathtaking rolling hills covered in bountiful grape vines as far as the eye can see are what greet visitors here. This region is home to over 500 wineries with tasting rooms, providing visitors and residents with an extensive selection of options for tastings and wine-centric festivals and events. Dining out here is an elevated experience in the many upscale eateries that specialize in artisanal farm-to-table menus. Vacation homes here range from private estates surrounded by scenic vineyards to cozy cottages in the many picturesque towns such as Yountville, St. Helena, Sonoma, Calistoga, Oakville, Healdsburg, Rutherford, and Napa.
Palm Springs: Golf and Leisure
Having access to world-class golf is on many vacation homeowners’ lists of must-have amenities, so if golf is on your list, look no further than the greater Palm Springs area. The region boasts more than 100 courses spread across stunning desert landscapes. Historic Palm Springs invokes images of Hollywood’s glamorous elite who have flocked here since the 1920s to relax and enjoy its charms. Sophisticated restaurants and cultural attractions, such as the mid-century modern architecture and art galleries, are also what draw visitors here. Popular vacation home communities beyond Palm Springs include Cathedral City, La Quinta, Palm Desert, Rancho Mirage, and Indio. In addition to iconic mid-century modern homes, second homebuyers will find elegant Spanish-style villas and expansive ranch homes where indoor and outdoor living spaces blend seamlessly.
Steps to Buying a Vacation Home in California
As with any real estate investment, you’ll want to work with trusted local partners who understand the state’s processes, fees and legal considerations.
- Consider your needs and desires: California offers a wide range of vacation homes, from oceanfront villas, mountain retreats, golf course communities and wine country estates. Consider your budget, how much space and which amenities are nice-to-have vs. must-have. Your needs may differ depending on whether you’re buying the home only for personal use or planning to rent it.
- Secure financing: Unless you’re paying cash, it’s best to get pre-approved for a mortgage. This will speed up the buying process, and you’ll have a clear understanding of what you can afford.
- Hire a local real estate agent: The California luxury vacation home real estate market has many micro markets and communities. Work with an experienced real estate agent who understands these nuances, as well as local restrictions, zoning, and potential risks such as mudslides, fires and earthquakes.
- Make an offer: Your agent will help you determine a fair but competitive offer, typically through a California Residential Purchase Agreement. Most buyers include an earnest money deposit of about 1% to 3% of the purchase price (but can be higher), which makes the offer more attractive and demonstrates the buyer’s firm intention to the seller. The earnest money remains in escrow until the home sale is final.
- Conduct due diligence: Hire an attorney to research the property and community. Review HOA or community rules, particularly in planned communities where rentals or renovations might be restricted. California requires sellers to provide a Natural Hazard Disclosure Agreement that lists environmental issues the property may have incurred, including floods, landslides, earthquakes, and wildfires.
- Close the deal: Expect the entire closing process to take 30 to 45 days, unless you pay cash, which may speed up the process. You’ll pay closing costs such as lending and appraisal fees, typically around 2% to 4% of the purchase price.
California Vacation Home Ongoing Ownership Costs & Management Considerations
Owning a vacation home in California comes with ongoing costs and some hidden responsibilities that you’ll need to consider:
- Taxes and insurance: Be prepared to pay property taxes and insurance, which can be high depending on the home’s exposure to risks such as fires, mudslides, and earthquakes.
- Utilities: You’ll need to pay for gas, water, electricity, and WiFi, even when you’re not using the home. Utilities tend to be higher here than in other markets due to wildfire prevention, fuel, environmental protections, and other costs.
- HOA fees: Most planned communities and condos charge HOA fees that cover maintenance, landscaping and security around the property.
- Property management fees: Even in a planned community with HOA fees, you will need to hire a property manager to help with maintenance and housekeeping within your home. Plan for seasonal maintenance and potential repairs, especially in risk-prone areas.
- Local permits and fees: If you rent your home, be aware of short-term rental restrictions and be prepared to pay for local permits and state taxes on rental income.
These hidden costs and responsibilities can offset the joy of owning a California vacation home. For examples of beautiful, luxury homes in well-managed communities with these services already in place, see one of our many luxury California residences.
Vacation Home Ownership vs. Flexibility: Which Matters More?
When considering buying a second home in California, assess your true intentions. Are the burdens of ownership worth the benefits, or do you want to enjoy the vacation home lifestyle? Full ownership has its perks; you may befriend your neighbors, personalize the space, come and go as you please, and potentially build equity over time. However, it also ties you to one destination, comes with ongoing maintenance costs and hassles, and often ends up underused, even by the most enthusiastic buyers. Traditional ownership is a popular choice for sophisticated investors looking to achieve that California lifestyle, but it isn’t the only way to get your dream vacation home here.
Modern solutions like Equity Estates offer a different way to a dream vacation home.
Instead of managing one high-end property full-time, you can gain access to a collection of luxury homes around the world. With Equity Estates, you may also gain access to higher-end, more upscale villas and estates beyond what you could afford to buy on your own.
Equity Estates: Stress-free Vacation Home Ownership
California is an appealing destination to own a vacation home, but traditional ownership can be complex, costly and fraught with hassles. With Equity Estates, you can enjoy the beauty and exclusivity of luxury living without the burdens of full-time ownership—no stress over local regulations, taxes, utilities, maintenance, security or property management.
Equity Estates Fund offers a fully managed luxury real estate fund alternative at a fraction of the cost of traditional second-home ownership. Instead of being tied to one property (and one investment), fund members enjoy an investment in a diversified portfolio and experience global travel (with personal concierge services and daily housekeeping) without the burden of property upkeep. And when the homes are sold ten years later, investors receive their investment back plus appreciation, assuming the market continues to increase in value.
From skiing in Lake Tahoe to exploring museums in Paris, wine-tasting in Tuscany, golfing in Scottsdale, snorkeling in Belize and sportfishing in Los Cabos, you can enjoy second-home ownership benefits without the headaches.
Equity Estate Fund investors enjoy:
- Access to 65+ stunning residences in the world’s most sought-after destinations, including Lake Tahoe, Palm Springs, Sonoma, Napa and San Diego.
- No property management responsibilities, including no landscaping, pool/spa upkeep, housekeeping, snow clearing, repairs or other maintenance concerns. The Fund manages it all seamlessly
- Designated residence managers who provide resort-style concierge services
- Flexible travel options, including bringing family or friends along
- Investment returns when homes are sold
Choosing Equity Estates Fund over second home ownership is ideal if you want to experience luxurious vacation homes like an owner without being tied down to a single location or dealing with the associated hassles.
Discover the more innovative way to travel the world with Equity Estates today!
