When a person sets out to purchase a vacation property, there are countless factors to consider. Moreover, there are also a few fundamental categories under which they may be grouped. The first thing to get straight is whether you’re purchasing the vacation home for your own use, to rent out or, the most common scenario, for both.
This boils down to the essential question of what you should expect from a vacation property for yourself, or what you have to provide to the vacationers to whom you will be letting the property.
Hot Springs Village rental homes, a vacation home rental resort in Arkansas, say that interest in their resort comes both from vacationers and those looking to invest in a second property for the purposes of renting it out.
The advantages of investing in a vacation property are manifold, but properties such as those at Hot Springs Village face one big competitor for the interest of such investors – the condo.
Condos have many advantages too, and they’re a very popular choice for second homes as both to rent out and for vacationing. Interest in condos does tend to lean more towards those hoping to live in them full time, but they are very often found in the type of locations that are also popular for vacations.
What’s the Difference?
The difference between the two is, most fundamentally, that which was just mentioned. Condos are popular for those who want to live in them. They are definitely more of a functional property.
What marks out a condo, by definition, though is that it is unit within a larger complex with shared amenities. There is usually a communal garden, and the amenities of the building itself are usually managed by the condo corporation, which is made up of the residents.
A vacation home, on the other hand, is designed expressly for vacationers. It is somewhere between an ordinary house and a hotel/resort in terms of the luxury that is provided.
The amenities are usually conducive to spending a vacation there, but there’s certainly no maid making the beds or breakfast provided for the residents every morning at 10 o’clock! Vacation homes combine a degree of luxury with a degree of the self-sufficiency. The occupants are left alone, but there are many luxuries left there from them.
This all depends on whether you’re renting these properties for vacation or to rent them out to other people.
In the former case, the things to consider are the amenities offered and whether the property is conducive to a great vacation. This means proximity to the attractions of the area and the availability of certain amenities. You can expect more of these from of a vacation home whereas condos are, as mentioned, more functional.
If you are buying a condo or a vacation home as an investment. Then you should consider the same things, but make sure that you can provide them. For condos, all the amenities will already be there, and so you will not need to worry about them.
For a vacation property, you will need to provide them to your potential tenants. In the case of the vacation home though, you will have a greater potential to attract discerning vacationers. The property is simply better suited to this – but it is your responsibility.
In conclusion, both a condo and a vacation home can be a sound investment or a great place to take a vacation. You just need to consider what you wish to do with the vacation home or condo and the differences between them.