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June 22, 2014

6 tips for buying the right vacation home

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If you’re on the market for a vacation home, here are some additional issues to consider, as laid out by agents and others knowledgeable about real estate:

BEWARE JOINT VENTURES:Text ColorSwatch/NoneStrokeStyle/$ID/SolidText ColorSwatch/NoneStrokeStyle/$ID/Solid$ID/NothingText ColorText Color$ID/NothingText ColorText Color Ideally, one person or family will buy and use the home.

“If you involve friends or family members in a joint venture, be cautious and have an attorney to draft a partnership agreement,” said Phil Immel of ImmelTeam Luxury Real Estate in Dana Point, Calif. “Human nature changes business and family relationships. Divorce or financial change of circumstances over the years can get messy.”

If there’s more than one party involved, he advised, have a buyout agreement in advance.

CONSIDER RENTING IT OUT: If you’re buying in a beach town and thinking of renting the home when you’re not there, get close to the water. Walking distance is most in demand, said Larry Aguilar of First Team Real Estate.

Aguilar is in the midst of closing a deal on a Balboa Peninsula condo for a client whose primary home is in Yorba Linda, Calif.

On the peninsula, Aguilar said, “You can make in the summer months what most people make in the whole year on a month-to-month rent somewhere else.”

If you are considering becoming a seasonal landlord somewhere, make sure you are clear on any rental restrictions, either by the city or a homeowners association.

FIGURE ON EXTRA COSTS: Think about how you would handle the business of rentals, including whether to hire a management company.

“Along the same lines, if you do not plan to do all of the work on the rental yourself, you need to consider having a team of people who can do repairs and manage the condition of the property as well,” said Christine Donovan, a real estate broker and attorney at DonovanBlatt Realty in Costa Mesa, Calif.

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