There are a great number of people who are attracted to the price of homes in distressed areas. Okay, Florida and Arizona come to mind. Many of these Buyers are thinking that they will buy something cheap now, enjoy it when they are able to get there and rent it out when they are not able. Some Buyers are also thinking that the day will come when they will spend at least 6 months every year in their vacation retreat. These Buyers need to think of a couple of things before signing the offer.
- Is your new home in a rent - attractive area? Maybe that three bedroom home in a nice family community is perfect if you are going to be living there year round. Now, what are you really looking for - something near the beach, near a community centre, surrounded by a golf course, in a gated community, managed by a HOA, close to the airport, walking distance to shops and restaurants, etc? Then, that lovely family home is not what is going to address your needs - or those of possible renters.
- Are you expecting your friends and family to rent your place? Well, they are probably thinking that they don't have to rent it, just visit you when you are there. Also, that prime time that you want to save for yourself is the prime renting time. So, now you have to consider that your renters are going to be strangers. Are you up to managing your property, collecting rent, ensuring the place is clean and rentable? You may have to hire a property management company to take care of your vacation home.
- Can you furnish your new home to be satisfactory for you and for renters? I don't think you are going to be buying the most expensive gadgets, expresso makers, computers, etc and leaving them available. Oh sure, it will look good on your advertisement that you have only top of the line things in your home but then you will also be asking top of the line rent. Is there a market for that type of home in the area? Maybe you just want to leave your junk and second hand things (that you long distance haul from home). Well, you might consider that a junky lived in look is not attractive to most picky renters. Of course, if your rates are dirt cheap then the furniture and furnishings can be minimal as well.