Deciding to purchase a second home or vacation home is certainly no small task. There are several factors to consider, both financially and logistically. As you likely already realize having bought your primary residence, buying homes is not usually a quick process. But there are ways in which you can make it easier on yourself.
Last time, The Peninsula On the Indian River Bay took a look at some of the terrific advantages of purchasing a second home, whereas today’s post will focus on the actual steps involved when buying your second home or vacation home. As you will see, most of these steps require a level of planning and outlining the journey that way when it comes time to make the final decision, you’ve made the process as simple as possible.
Insight Homes is among the best home builders in Delaware thanks to an unwavering commitment to excellent quality and the level of luxury you come to expect from your new house or second home. As a Department of Energy award winner, Insight Homes’ innovative construction techniques set a new standard for home performance within The Peninsula community. Coupled with a private golf course, tree and pond views, and you have a perfect match.
Decide On Your Ideal Location
For most people purchasing a second home or vacation home, location is one of the primary considerations, if not the top factor. Owning a second home is a fantastic opportunity to live part of the year in a location that offers something different from your primary residence such as beaches and gorgeous views.
Resort-style communities typically offer multiple properties and price ranges to fit your particular needs, from a smaller vacation home for two or a larger, second home for you and your family to spend the summer. The Peninsula On the Indian River Bay is home to some of the most sought after beaches, land and food on the East Coast.
- The location of your second home or vacation home is usually one of the top considerations before you buy.
- A second home is a great chance to experience a different region and varying lifestyle than you have at your primary residence.
- Resort-style communities such as The Peninsula On the Indian River Bay typically offer multiple types of properties and price ranges to meet your particular needs.
- The Peninsula is home to some of the most sought after land, beaches and food on the East Coast.
Establish What You Want
Location is far from the only consideration you should weigh before purchasing a second home or vacation home. What else is important to you and/or your family? If you and your wife are nearing or in retirement, then downsizing might be the best way to go for you. Look for homes for sale in Delaware that are easy to maintain and cater to only a couple living there.
For families, you’ll likely still need something to fit everyone and guests, especially if you intended to use the house as a summer vacation home. Delaware real estate is a good place to look for and buy a second home or vacation home, so take your time and pick something that checks most, if not all, your boxes.
Beyond the home itself, what about the community? What types of amenities would you like access to and what maybe isn’t worth paying for? The Peninsula offers a wide variety of excellent amenities for both second and vacation homes, featuring the award-winning, Jack Nicklaus-designed private golf course. The Peninsula also has a 33,000-foot clubhouse complete with pools, an athletic center and members-only spa, as well as a tennis and pickleball complex.
- It’s important to weigh what other factors are most important to you in a second home or vacation home beyond simple location.
- A smaller property might be best for a retired couple, whereas a larger home would be best suited for a family looking for a summer vacation home.
- Delaware real estate is a great place to look for second homes or vacation homes, so take your time and pick something that checks most of your boxes.
- The Peninsula On the Indian River Bay offers a wide variety of amenities, featuring an award-winning, Jack Nicklaus-designed private golf course.
Determine Your Price Range
Knowing what you want and where you’d like it is a great place to start, but purchasing a second home or vacation home still requires a significant investment. Determine what your budget is for your second home and use those considerations to figure out what’s realistic within your price range. Remember, buying a second home or vacation home is supposed to be about pleasure and convenience, not a source of financial strain or hardship. So, being realistic with what you can afford is critical.
Focus on homes for sale in Delaware that fit within your price range and that meet most of your most desired amenities. You’re sure to find one that works best for both and the decision becomes much easier from there. As a safe rule of thumb, assume that your down payment, closing costs and furnishings will account for about 33 percent of the home’s purchase price. So, for example, if you have $100,000 in cash, your beginning price range would likely be from $260,000 to $340,000.
- Purchasing a second home or vacation home still requires a significant financial investment.
- Determine how much you can afford to spend and what amenities you can get within that price range.
- Remember, a second home or vacation home should be about pleasure and convenience, not a source of financial stress or hardship, so be realistic.
- A safe rule of thumb is to assume that the down payment, closing costs and furnishings will account for roughly 33 percent of the home’s purchasing price (i.e. if you have $100,000 in cash, your beginning price range would likely be from $260,000 to $340,000.)
Consider Fractional Ownership
While most vacation properties are transferred in deeded transactions (the purchaser gets a recorded deed evidencing his ownership in specific identified real property), fractional real estate ownership is an alternative that became popular in the 1990s. This allows a purchaser to more closely match their projected usage of the property with its cost or, conversely, allows the purchase of a more expensive property for the same investment.
If you, for instance, wanted the amenities of a $1 million-plus home, but don’t have that kind of money to purchase a vacation home, fractional ownership could be a possible alternative. As an example, an investor could purchase fractional interest in $100,000 with the right to use the property for 30 days of the year, the value of the property purchased, however, could be as high as $1.2 million (12 investors making $100,000 investment each for a total of $1.2 million). Obviously, there is typically a vast difference in the look, accommodations and appointments between $100,000 and $1,000,000 properties.
You could even negotiate a deal for a local realtor to manage routine maintenance and care for the vacation home that way you don’t have to worry about any of that when you spend time at the vacation property. This makes the visit a true vacation!
- Fractional ownership could be a possible alternative to purchasing a vacation home, something that became popular in the 1990s.
- This type of ownership allows a purchaser to more closely match their usage of the property with its costs or the purchase of a more expensive property for the same investment.
- If 12 investors put in $100,000 to buy a home for part-time use throughout the year, they would have the buying power of $1.2 million, but with the same money invested.
- This allows you a much nicer property for part-time use, without the investment or cost of maintaining the property.
Select A Knowledgeable Local Realtor
Nobody will understand Delaware real estate better than a local Delaware realtor. Finding a local and knowledgeable realtor provides you with a strong ally in your search for new homes in Delaware and can even take many of the duties off your plate. A great realtor could help you with mortgage financing, guide you through the process and may even be able to manage the second home or vacation home while you are away.
- A local realtor is the best person to understand Delaware real estate.
- A strong realtor is a strong ally in your search for new homes in Delaware.
- Your realtor can even take many of the duties of looking for a new home off your plate.
- A realtor can help guide you through the process, assistance with mortgage financing and may even be able to manage the property while you’re away.
Contact Insight Homes Today
When it comes to purchasing new homes in Delaware, there isn’t a finer resort-style, private community in the entire state or region than The Peninsula on the Indian River Bay. Better yet, Insight Homes is among the best home builders in Delaware. Every Insight home is built with only the highest quality, which allows you to live a life of luxury and experience everything the Peninsula has to offer each summer or year-round! To learn more, don’t hesitate to contact Insight Homes today.