You fell in love with this house and lot in Baguio City, so much so that you want to go back there repeatedly when you’re on vacation. You promised yourself that if you make some money you’d buy a piece of property there. However, before you take that first step in buying a vacation home, consider these solid pieces of real estate investment advice consolidated from the wisdom of investment experts.
• Buy within your means. It’s easy to be tempted to buy your ideal vacation home when you spot it, making you oblivious to what you can really afford. If possible, talk to real estate agents/brokers in Baguio city to help you figure out how much to spend and how much loan to get. Lending institutions are becoming more stringent on their policies and requirements. Think if you can afford the 20 percent down payment (or however much it is), and the monthly outlay that can go to a maximum 36 percent of your income.
• Look at extra costs. After knowing how much you can afford, take a look at the other costs you need to spend for the house, such as taxes, insurance, utilities, and maintenance. If you don’t intend to stay there most of the time, you may have to hire a caretaker and spend for maintenance costs.
• Deal with real estate agents/brokers in Baguio city who are familiar with the area. Working with a real estate agent who knows every nook and cranny of the place is a great source of information you can’t find elsewhere.
• Choose a good location. You may want a place away from the rest of the world, so you want your vacation home hidden somewhere in the woods where modern technology cannot reach. However, your idea may not work well if you’re planning to rent out the property. Although vacationers want to stay in the area, they prefer to have everything accessible, such as the main road, parking area, convenience store, and strong cable or Internet signal. You need a house and lot in Baguio City that’s situated in a win-win location.
• It’s common knowledge that Baguio City weather is ideal especially during summertime. However, what is the condition during the rest of the year? When the rainy season comes, do the roads become impassable? How safe is a house during extreme weather conditions? Wouldn’t it be more prudent to look for a condo for sale in Baguio City instead of a house and lot? You need to know how the place fares all-year round to help you decide if you still want to spend or rent out a place that is picture-perfect during summertime, but a forlorn sight come rainy season.
• Consider the property as your second home, not an investment. In truth, it’s hardly possible to recover the investment placed on a vacation home. If you’re bent on buying one, choose a property with a house where you and your family can have a good relaxing time away from home. Otherwise, if budget doesn’t allow for a house and lot, there are plenty of condominiums in Baguio City, and a unit in one may be the more feasible option. It will be more than it’s worth if you spend precious moments to curve memories, and care for the house for continuous use by future generations. There’s simply no equivalent price for that.
Owning a vacation home can be a rewarding experience if you put much thought on it. Whatever your reasons are for wanting a vacation home, consider the real estate investment advice provided here before taking the plunge.