GMAC Real Estate Vacation Home Guidelines
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Vacation Home Guidelines

Real estate is a long-term investment, and the rule-of-thumb against short-term speculation applies to vacation homes just as much as any other property. With that in mind it’s important to really do your homework before buying a vacation home, and going into the process with a plan of action and with the investment potential of the home always kept in mind. This means it is not prudent to go on vacation, fall in love with the area and immediately buy a vacation home on a whim. That resort area might be an excellent place to get into your own vacation home, but take some time and do your research first.

A Quick "To Do" List

Since you are obviously buying a vacation home away from your primary residence – it wouldn’t really be a vacation spot otherwise – once you’ve done a little primary research on your own, enlist the help of a local real estate professional. They know the area and market and can help you find the perfect vacation home.

Another way to get into a solid investment, particularly for newer vacation homes is to find real estate built by large, credible developers. Legitimate developers pour tons of resources into research about the viability of building a new resort development. This can give you some peace of mind that the decision to build was based on a thorough understanding of the market, its growth potential and how much tourism is expected in the area.

It’s important to buy into a vacation home with the possibility of renting the property. You may want the property just for your own use and expect it to sit idle when you’re away, but you never know when the desire, or need, for the extra income renting will provide might crop up.

Two "Don’ts"

Don’t buy a vacation home with any tricky or unusual mortgages. If you can’t afford the real estate through sound financing, that vacation home is simply too risky of an investment. Also, don’t assume you can rent your home without checking local law. Make sure your vacation home can legally be rented on a short-term, like weekly or even nightly, basis. Some areas have covenants or laws preventing short-term leasing and would effectively take the rental option out of your hands.

Find Vacation Homes for Sale, or Learn More

To search for a selection of second homes for sale, please visit the website of a GMAC Real Estate Office that serves the area where you'd like to buy a second home. To learn more about buying Second Homes or Vacation Homes, explore the rest of this section, or contact a GMAC Real Estate Agent.