Buying Your California Vacation Home

by | Jun 17, 2019 | California Real Estate

Buying Your California Vacation Home 

California is known for a carefree attitude and year-round amazing weather. It’s no surprise that people from all over the country, and even the world, consider the Golden State a great place to buy a vacation home. If you’ve been thinking having a part time vacation home, there are some things about buying in California you should know. Here are some tips and thoughts to help you work your way through the process to buy a vacation home in California.  

Where To Buy 

Of course, where you buy your home in the Bay Area will depend on a number of factors, including what kind of lifestyle you want to have while you’re on vacation. Do you want a relaxing week at the beach? Do you want access to hiking, biking, or other adventures? Do you like the bustle of the city center?   

Some neighborhoods have an amazing view of the Golden Gate Bridge. The landmark Mission District is known for its arts and music scene. If you want to be closer to the corridor of innovation, something near Silicon Valley may be a good choice, though it will be on the pricy side. If the ocean is calling you, Pacifica is beautiful.  

These are only a handful of the potential opportunities, and somewhere else may call to you as well.  

The Cost 

Buying a vacation home is more than just the cost of the house itself. Everyone knows that home prices are high in and around the San Francisco area, but you won’t just pay the asking price if you buy a vacation home. Why?  It will require a client to have excess cash flow, as most of those purchasing a 2nd home will not be able to rely on rental income 

Your insurance cost will be higher as well, especially in the bay area where you may need additional coverage for earthquakes or floods. And if you choose to rent it out, you’ll need to carry additional rental insurance.  

Vacation Rental 

Speaking of using your vacation home as a rental, there are a lot of benefits to this process as well. If you plan on using your vacation property only a few times a year, you could earn some additional income by renting it out.  However, this would be considered an investment property purchase, taking your 2nd home minimum down payment from 10% to now 20% of purchase price 

Short term rentals are easier than ever today with services like AirBnB and VRBO. If you live outside the state, it may also be helpful to work with a property manager who can clean between visits and handle any issues that may arise during someone’s stay.  

Do you have more questions about buying a vacation home in California? Contact Zachery Adam and the team at GoPrime Mortgage, Inc. today.  

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