Choosing a Location for a Vacation Home
There are so many factors involved in choosing a location or even a country for a vacation home. How does one make that decision? There is bound to be an intelligent way to choose; but this is an emotion based decision. Does intelligence matter? I think it does. The heart has to have veto power though.
The activities desired has to be the first qualifier. Make a list of things to do on vacation. Make a list of places to choose from. Match up the two lists. Hopefully this will narrow the choices down some. Costs may or may not be a big factor. Check the airfare from home to the vacation home. Some places are accessible by car. What is the expected mode of travel. Golf clubs are not too bad on an airplane. Surfboards are tough. Windsurfers, kayaks and canoes are probably impossible. Can they be rented at the location; or can you store one at the vacation home.
If the vacation home is to be rented when not in use a financial analysis is a good idea. If it is not to be rented, how will the property be secured when it is not in use. In many places leaving a property vacant is like putting up a “move in free” sign. Getting a property back after someone moves in is nearly impossible. Possession is so hard to get on an occupied property that some places even offer “tenant insurance” to cover the rent and costs if a tenant quits paying and refuses to move.
What about security? Capital flows to the highest yield with the lowest risk. A person willing to acquire a property in a less secure environment can expect to pay less for an equivalent property. What type of risk are you willing to take? Nicaragua is a bargain if you are not afraid of Daniel Ortega. I personally do not think he will kill the goose that laid the golden egg. He may even make thing better.
David Segrest is a REALTOR with Segrest International REALTORS. His webpage is http://www.segrestrealty.com
Showing posts with label Vacation homes. Show all posts
Showing posts with label Vacation homes. Show all posts
Thursday, November 8, 2007
Saturday, June 23, 2007
Owning a Vacation Home Abroad
Owning a Vacation Home Abroad
What is your dream? Snow covered mountains, blue ocean waters, huge game fish or hunting trophies, golf, other recreational activities. All of these are good reasons to buy or lease a home abroad. Sometimes the real estate in exotic locations is even less expensive than similar properties at home. Sometimes the potential for appreciation is greater. Sometimes the location itself can just not be duplicated anywhere else in the world. Occasionally a vacation home may serve the purpose of a retirement home later.
Whatever the purpose for buying, there are multiple issues to consider. Ownership and user requirements and systems are different in almost every country. In some countries one can own the improvements and not the land. In some countries it is necessary to form an artificial entity or trust of some type to take title to the property. In many areas it will be necessary to have someone occupy the house when the owner is absent. If the home will be rented when the owner is not using it, a manager will be needed. Tax considerations get more complicated when national borders are crossed. It is always an excellent idea to use a competent local professional when purchasing or renting a property abroad.
Finding a competent professional is not as easy as it might seem. In many countries, real estate practitioners are not licensed or regulated in any way. An incompetent or unscrupulous agent can be worse than no agent at all. How can one find a good agent in another country?
David Segrest is a REALTOR in Charlotte, NC
David S. Segrest, CIPS, CCIM, TRC, CEA
david@segrestrealty.com
http://www.segrestrealty.com
Serving the world in the Carolinas, Serving the Carolinas in the World
What is your dream? Snow covered mountains, blue ocean waters, huge game fish or hunting trophies, golf, other recreational activities. All of these are good reasons to buy or lease a home abroad. Sometimes the real estate in exotic locations is even less expensive than similar properties at home. Sometimes the potential for appreciation is greater. Sometimes the location itself can just not be duplicated anywhere else in the world. Occasionally a vacation home may serve the purpose of a retirement home later.
Whatever the purpose for buying, there are multiple issues to consider. Ownership and user requirements and systems are different in almost every country. In some countries one can own the improvements and not the land. In some countries it is necessary to form an artificial entity or trust of some type to take title to the property. In many areas it will be necessary to have someone occupy the house when the owner is absent. If the home will be rented when the owner is not using it, a manager will be needed. Tax considerations get more complicated when national borders are crossed. It is always an excellent idea to use a competent local professional when purchasing or renting a property abroad.
Finding a competent professional is not as easy as it might seem. In many countries, real estate practitioners are not licensed or regulated in any way. An incompetent or unscrupulous agent can be worse than no agent at all. How can one find a good agent in another country?
David Segrest is a REALTOR in Charlotte, NC
David S. Segrest, CIPS, CCIM, TRC, CEA
david@segrestrealty.com
http://www.segrestrealty.com
Serving the world in the Carolinas, Serving the Carolinas in the World
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