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Why Choose Vacation Home Rentals Over Hotels?

When you take a vacation, you probably want to get away with every day stressors both from work and at your house. Would it be nice to be somewhere you can freely lounge around without anyone bothering you? Being away can easily do that especially when you choose to take a break far away. However, with hotels being too pricey for your budget and the chaotic environment brought about by other vacationers do you think you can relax?This is why vacation house rentals come in handy. Vacation rentals are furnished homes that can be rented out for a short period of time. Unlike hotels and motels that have a lot of limitations on their set of amenities, vacation rentals gives you a homey atmosphere with everything inside the house available for you to use as if you own the place.

Other benefits of staying in a vacation home are the following:They are unique in a way that no two vacation houses are alike. Each home boasts of its own personality without the standard decors that a hotel has. You can conveniently search for vacation rentals by owner so that you can match the house with the personality of the one who lives on it.
You have more privacy during your dream vacations. You never have to listen to other guests walking up and down the corridors, or have snotty hotel staff looking at you from afar. You also have more space to move around compared with that of a hotel room.
It’s easier to stay together when you are having a group vacation. Unlike hotels where you have to rely on the availability of rooms, vacation homes let you stay together as a group which multiplies the fun during dream vacations.
You do not have to worry for pricey room service and expensive menus. With a vacation home, you can order take out and have it delivered right into your doorstep. Kinda the same with having room service yet more economical.
Vacation homes are pretty much cheaper than a hotel room. It may seem to cost much at the start but considering the amenities and other perks that goes with it, you can definitely tell the big difference in price.

Today, there are more vacation homes that are being rented out for vacationers. You only have to look them up from vacation rental sites that offers match up services for you to have a vacation house that will make you feel at ease. You can even do a search on your own and have searched for vacation rentals by owner, by location, price, and other parameters to your liking.You do not have to worry about being unhappy with a vacation home. All you need to do is to look for a vacation home that follows the standards of the Vacation Room Managers Association so that you can be rest assured that your chosen vacation home is safe, secure, well- maintained, clean, and most of all, very accommodating.

Kissimmee Vacation Homes in Orlando

One of the most popular vacation destinations in the world is Orlando, Florida. A huge reason why so many people visit this part of the world is because of the Walt Disney World resort and its theme parks. Walt Disney World resort is the world’s largest recreational resort and is located in both Lake Buena Vista and Kissimmee.Kissimmee is located on the southern part of the Disney complex and it’s here that you’ll find most of the areas vacation rental homes. There are many advantages for renting a vacation home in Kissimmee but number one amongst them is the ability to enjoy a luxurious yet affordable vacation. The second reason is the fact that you are just moments away from enjoying the Disney experience as well as all the other local theme parks such as Sea World and Universal Orlando, not to mention all the other attractions that the area has to offer.A stay in a vacation home is simply a far more luxurious vacation than compared to staying in a hotel. The home is far more inviting and has much more space than the typical hotel room or suite. You can relax in private without worrying about noisy neighbors, you have your own private pool to splash around in and you have an element of privacy that you just can’t get at a hotel.

Most vacation rental homes are conveniently located in quiet residential communities but just moments from the main area theme parks. A Kissimmee vacation home offers many perks that a hotel simply cannot. Things such as large screen TV’s, separate bedrooms, games rooms, home theaters, and two or maybe three large living areas top the list.Cost is also a major consideration and if you are traveling with a large family then putting them up in several hotel rooms can get very expensive. Depending on the size of your family, you can rent a house with three bedrooms, or more, for around the same price of one hotel room and it is certainly a far better option than trying to cram everyone in to one hotel room. Just imagine the convenience of not having to wait for your turn to use the bathroom or watching what someone else wants to watch on TV as vacation homes usually have TV’s in each bedroom.One major drawback of hotels is the fact that most hotel pools are situated outside in the open air and that means you may soon be the target of annoying insects or bugs. Each vacation rental house comes with a screened in lanai and pool area that prevents annoying pests from attacking you and this means all the family can enjoy relaxing and unwinding in comfort.A fully functioning kitchen is also another benefit of vacationing in a rental home. Going out for every meal soon gets tiring not to mention very expensive. Vacation homes give you far more options than a hotel with a solitary restaurant that opens when the hotel says it will open. Naturally, you might fancy a lie in one morning and a kitchen allows you to eat what you want, when you want to eat it so there’s no missing breakfast. In fact, it’s just like being at home as you can get groceries from local stores and enjoy the feeling of being home away from home.Vacation homes are also great places to come home to after a busy day at a theme park or visiting some local attraction. Sometimes you might just fancy a quiet night in and nothing can be better than ordering a pizza or cooking a sumptuous meal for the ones you love at the end of a busy day. Each vacation home is usually equipped with everything you might need for cooking and baking and preparing a meal on vacation is just one way to involve the whole family and have some fun.

Talking of family fun, most vacation homes also have a whole host of amenities that include cable TV, DVD players, broadband internet, video game systems, pool tables and a whole lot more for all the family to enjoy. Sometimes you may find that you’ll just not want to go out and that you just want to enjoy a day at home. Vacation home rentals really do give you lots of space to move around and live in and it’s not uncommon to feel like a King or Queen in a palace when you take a vacation in a rental home.In fact, those that choose to vacation this way rarely go back to hotels afterwards so if you haven’t stayed in a vacation home before, this really is something you need to look into before your next trip.

When Purchasing a Vacation Home Consider the West!

Montana Vacation Home LoansMontana is a state full of beautiful mountains belonging to the Rocky Mountain range, approximately 77 named and many unnamed. Nicknamed as “Land of shining mountains” and Big Sky Country”, Montana is a vacationer’s paradise. It is a big state and known for its wilderness and national parks. Owning a vacation home in this state is a logical thing. Whether it’s a summer golf residence, large mountain acreage, an undeveloped farm and ranch, or river fishing retreat, funding for vacation property in Montana can be obtained from Resort Funding/Montana Mortgage. Also the sheer variety of funding choices that we offer is unbeatable.If it is a condo that you intend to buy it is wise to opt for a Montana condominium loan even if you can afford to buy a condo outright. But if you prefer purchasing a vacant plot and building a house on it, we feature Montana construction home loans. These loans take care of the heavy expenses that normally happen during construction of a home. Usually only interest is charged during the construction of the house and then once the construction is over, usually within 6-12 months, the loan turns into a traditional mortgage program. Lot loans in Montana are useful for people that wish to buy land immediately but defer constructing a home on the land to a later date.Washington Vacation Home LoansWashington State offers a climate that is predominantly oceanic in the west due to its proximity to the Pacific Ocean. Washington’s claim to vacation fame is its sandy coastal beach regions, snow covered mountains, and deserts. Recreational activities can be enjoyed in the state’s many terrains. Washington also can satisfy the cultural hungry with a host of cultural programs all through the year.While the real estate boom slowed down in the entire country, Washington state held the promise of rising real estate prices in 2006 (Source: CNN Money – This is because Washington lagged behind in home ownership. The strengthening of job scenario in the state could mean that renters are converting in to owners and also into vacation homes.

If you are contemplating building a vacation home in Washington then construction home loans can ensure that your home gets built within a stipulated time period without any hassle. One time construction loans in Washington are powerful programs that take care of lot purchase, construction, and permanent loan all at once without bothering about reapplying and qualifying again.Condotels are a branded lifestyle for affluent vacation home owners and in Washington they do not come cheap. But the amenities and the cachet of a luxury hotel are worth paying for through Washington condotel financing.Idaho Vacation Home LoansIdaho, especially McCall, Idaho has not become as crowded as most of the busy vacation destinations in the USA. Though the tourist destinations in Idaho are as picturesque and as enjoyable as you can get it still retains its originality and freshness. There are a myriad of activities that vacationers can indulge in Idaho. The amenities like healthcare and connectivity also leaves no room for complaint in Idaho.Your dream of buying a vacation home with a view of snow capped mountains or placid lakes can take shape with Idaho construction loans. A vacation home in Sun Valley, the number 1 skiing resort in the country; or overlooking Lake Payette in McCall; or in Boise allowing you to go white water rafting in Coeur d’Alene or Island Park as an alternative to Jackson Hole Wyoming can be financed through many of Idaho vacation home loan programs. Depending on your need you can choose from Idaho lot loans, Idaho construction loans, and one time construction loans Idaho. Each of these financial programs has several flexible policies that a prospective buyer can opt according to his specific needs.Idaho, the snowmobiling paradise, is truly a vacation destination and its essence can be savored more by a vacation home owner.Wyoming Vacation Home LoansThe majority of the Wyoming state is dominated by Rocky Mountain ranges and rangelands. The mountain ranges of the North West taper off in to beautiful open plains in the east in Wyoming. Such diversity makes this musically sounding state a sanctuary for vacationers. Travel and tourism industry along with mineral extraction industry form the main driving force of the economy. Millions of tourists visit Wyoming every year. The national parks: Grand Teton National Park and Yellow Stone National Park are just two of the main tourist attractions of the state. Nicknamed as the “Cowboy State”, Wyoming has been ranked as the 3rd most livable state in the USA for 2007. Yellow Stone National Park and the Devils Tower are the two oldest national parks and monuments, respectively, in the USA. Jackson Hole Resort and Teton Village are undergoing major on-mountain and village development as are surrounding resort areas.Of course the vacation homes are costlier in this state simply because of the booming tourism industry. But that should not deter interested buyers as Wyoming vacation home loans are here to help achieve their goals. Whether you are looking for condotels, luxurious villas, modest cottages, or simply land to build your dream vacation home your financial needs can be met by Wyoming lot loans, Wyoming construction loans, or one time construction loans Wyoming. All these Wyoming vacation home loan programs have features that can suit any type of buyer. For example the lot loan program of Wyoming can be exempted from proof of income.Jackson Hole, Wyoming is a premier vacation spot in the country. And Wyoming vacation home loans can get you a home there as well as in any of the important places of this essentially Wild West state. We often can provide zero lender fee loan program options.In the Final AnalysisThe reasons for buying a vacation home are not often financial. There are overriding emotional, recreational, and family reasons for buying a vacation home. But that doesn’t mean financial considerations can be overlooked. The real estate market for vacation homes has its own set of risks, especially if you are considering reselling it in future. Due diligence and ample amount of research is advised before zeroing on buying a vacation property. If selected with weighing the pros and cons properly your vacation home could end up as a peaceful retreat as well as a solid financial asset.

A buyer should be prudent enough to opt for a property that meets his vacation needs. Several factors should be taken in to consideration while buying a vacation home in any of the above mentioned five states. Direction of future growth in that particular area, possibility of price appreciation, commuting distance from the nearest city or town (in worse weather conditions), availability of healthcare during emergencies, help accessible during natural disasters, and the presence of friends and relatives or the presence of a community in the proximity should be thoroughly considered before deciding to buy a vacation home. Some local rules also should be studied as they can make a lot of difference to the purpose of your vacation home buying. A local caveat restricting short term rentals can work against your aim of earning substantial revenue through rentals.Securing funding for a vacation home is not that difficult as actually there is a wide range of financing alternatives; a prospective buyer should study the pros and cons of all loan instruments. When deciding about a fixed rate or an adjusted rate, the time period of repayment of the loan, various conditions and clauses of a loan instrument should be studied properly.A vacation home will be able to provide the desired relaxation and rejuvenation if the financial aspect is dealt with wisely, suiting to your budget and balancing your needs. Hard practical sense and not dreamy woolliness will help a lot in making financial decisions. If chosen correctly vacation home loans can turn your cherished dream become a sweet reality. Then you can have a better home away from home.

Things to Consider When Funding For Resort Properties and Vacation Homes

For people working hard, playing and vacationing harder seems to come naturally. Vacationing in a relaxed milieu surrounded by pristine nature rejuvenates the body and the mind. Therefore vacationing has become an essential activity pursued by most of the busy people in our country. After shuttling between office and home for months, busy executives and entrepreneurs look forward to the much needed vacation breaks and welcome those with joy.A typical vacation requires a lot of advance preparations such as: bookings and reservations of plane tickets to the vacation destination and arranging accommodations. Enjoying a vacation involves smart planning. Owning a vacation home is definitely a part of that smart plan as it takes care of the most important item of a vacation plan – accommodations.
Vacation homes are preferred because:o After all it’s a real estate investment and if done wisely can turn into an income yielding financial asset.
o It allows going on a vacation whenever the mood strikes, without waiting for reservation confirmations.
o There are a host of tax benefits that can accrue to a vacation home owner.
o Appreciation in the property value can result in a sound investment.
o Owning a vacation home means never having to perform major packing and unpacking chores interfering with the enjoyment.

Colorado Vacation Home Loans
A second home or a vacation home is not the topmost priority of an average American household. But still it enjoys an importance that is hard to ignore. The year 2005 witnessed a steep increase in the number of people buying second homes. The year proved to be hot for second homes with a 39% of all transactions accounting for second home purchases.Despite the appreciation in the prices, an increasing number of people are buying second homes for vacation or retirement. According to a survey conducted by the National Realtor’s Association nearly seven million vacation homes now exist in the USA and it is projected that more than 30 million people will buy vacation homes in the next decade. The easy availability of home loans is the reason why owning a vacation getaway is not an impossible dream that is just meant for the wealthy. Funding of resort properties and vacation homes has become easier than they were a decade ago.Ideally, vacation homes should be situated within 2-3 hours drive from a major metropolitan area as longer drives could be tiresome and take the fun out of vacation. They should be situated near a lake, overlooking an ocean, or providing a vista of the mountains. The benefit of buying vacation homes around these natural beauties is that as their rates are likely to appreciate in the future or at least very unlikely to depreciate if not appreciate greatly. Of course, most of these resorts feature amenities such as Ski Mountains, golf courses, bicycle and hiking trails, and other outdoor sports.And when it comes to buying resort property or vacation homes nothing beats the states of Washington, Idaho, Montana, Wyoming, and Colorado. Moreover Washington, Idaho, Montana, Wyoming, and Colorado construction home loans are easy to secure with a down payment as little as 5%. The interest rates are the same as first home loans, in most cases.Colorado offers an amazing variety of vacation ideas. From watching bald eagles in one of the national forests to motor cycling across the state – the idea of a vacation in Colorado is exciting and refreshing. Therefore Colorado figures as one of the most preferred states for vacation home buying. Forbes magazine reports that Eagle, Colorado is becoming popular with vacation home buyers. Eagle, Colorado is preferred by people who love to ski but do not wish to be in a skiing town such as nearby Vail or Aspen. The property prices here range from $350,000 for townhouses to $1.5 million for single family homes.

Fixed rate mortgage, adjustable rate mortgage, and interest only programs – Colorado condominium loans are available in various forms. Keeping pace with the latest trends in real estate market Colorado also offers condotel home loans where the owner can earn rental income when not using the luxury hotel suite property. Other vacation home buyers unwilling to own a home solely can consider Colorado fractional loans. Constructions loans in Colorado come loaded with so many options that a vacation home buyer really has a plethora of choices.

Pros and Cons of Owning a Vacation Home

A vacation home is a second home as a supplement to your permanent home. As an owner of two vacation houses I can introduce you to a number of aspects that will help you getting your dream vacation real estate with lasting pleasure for yourself and your family. In fact when you read this easy list you will also get an impression of the pros and cons of owning an extra home for vacation.Some of the same aspects of buying a vacation home are exactly the same as for buying a permanent home.Price and running expenses of the vacation homeFor most of us the price when we buy a home and the costs through the year are obvious and important limitations to take into account. Make sure to think through what you can afford now and what you can afford when you retire if that is in the horizon.The most important aspect of a vacation houseIf you ask a real estate dealer about the three most important aspects when you are searching for a new house he will say: 1. Location, 2. Location and 3. Location.Think through what will that mean for you. When you get a home for vacation you might be able to improve it and make it bigger and better. But you cannot change the location for the same house or vacation flat.

Many will summarise it in the way that it is smarter to buy a not so super vacation home in a super nice location – than the opposite.The style of the vacation homeAs we already have 9 grandchildren from our four children we gave a high priority to our vacation houses that could accommodate everybody. Not in a luxury way but in a functional way. Other couples might be more focussed on having a more luxurious living space for themselves and say two friends on overnight stay or the like.Other families might be more focussed on finding a rather simple and basic accommodation that is not demanding in anyway but which might have a rustic appearance.Facilities at the vacation homeIf you go for a vacation house far away from other people the facilities in the house might be quite simple and primitive. You might not even have running water and toilet facilities.In such a place it will also be a challenge to get help from professionals when you need repair and service. On the other hand such a house might be rather cheap to buy.How often will you or family members use the vacation home?Be realistic and calculate how often you and your family would actually be able to make use of it when you think of your checklist for reflections before you buy an extra home for your leasure time. A vacation house or other vacation home must not develop to be a burden in daily life. Difficulties and expenses going there should be a part of your calculation, but also your ideas of alternatives like going abroad on vacation.Can you make use of the vacation home in the way you want?Finally you should think over and discuss in the family which kind of activities you want to have as options when you search for a vacation house or flat. Some families are very focussed on skiing, others on swimming and sun bathing on a beach, others on wildlife experience and others again on hunting. If you have teenage children ask them what could attract them and expect to let them bring a classmate or other guest with them when staying on vacation.Summing up the pros and cons of owning a vacation homePros of a vacation homeYou will have the ability to escape from your daily duties and exchange your home environment with something different that might reduce stress and improve your feeling of being on vacation.

Often you will combine your trips to your sparetime home with social activities like inviting friends and family members. Your guests will often think back of such visits with much more satisfaction and pleasure compared to normal social gatherings in your permanent home.Your children will get a wider horizon by being familiar with another location than their daily surroundings.Cons of a vacation homeA vacation home is an extra burden in economy and daily management.It might limit your access to travel to new places and to experience unfamiliar sightings and cultures.It might generate some discussions in the family when to go and when not to go. You might experience clashes between your dreams of going to your vacation place and to fulfil expectations to stay home and be involved with other activities, e.g. birthday parties of friends etc.And finally it will not be possible to be sure when you can sell your vacation home in time to a decent price.

How to Promote Your Vacation Home Rental

In the past, promotion of the availability of a vacation home rental was limited to a few local avenues – print advertising, flyers handed out or hung up around town, postcards left in local establishments, and word of mouth. With the advent of the Internet, a new option has been created for marketing vacation rentals. You can now promote your rental home across the globe relatively inexpensively and easily. You can create your own website or you can take advantage of listing sites that draw the traffic in for you.In this first part of a forthcoming series of articles, you will learn the basics of how to promote a vacation rental home. Each additional installment in this series will go into more detail about marketing vacation rentals in a variety of ways.Marketing Vacation Rentals with Individual WebsitesIt has become very easy for anyone to buy a domain and hosting package and promote a vacation home rental online. Plus, you don’t have to know HTML or be an experienced web designer to take advantage of marketing vacation rentals in this way; there are many programs that have been created that make the creation of a slick-looking website easy. You want to make sure that your vacation home rental site looks as professional as possible and contains pictures of the inside and out as well as details about all of the amenities available. You can also include information about price and availability if you wish, or you can require that interested parties contact you for more information. And make sure that you have a way for visitors to contact you!

At its core, your vacation home rental site should serve as an online version of a glossy brochure that you might hand out to prospective renters. You will learn more about ways to create great sites for marketing vacation rentals and how to get them noticed in future articles in this series.Vacation Home Rental SitesWhether you want to create your own website for your vacation home rental property or just want an easy way to advertise your home, you may be interested in looking into the benefits of vacation rental websites. These sites make marketing vacation rentals easy by compiling listings of homes for rent by owners and/or companies to help bring the renters to your door. Many vacation home rental sites charge a small fee for your listing but allow you to incorporate photographs, text, and a link to your own site. These sites may also make it easy for renters to get in touch with the owners of homes. Future articles will teach you what to look for in a vacation home rental site and how to promote a vacation rental alongside the many listings that are available.Marketing Vacation Rentals with Print Advertising – From Flyers to Newspaper AdsWhile the Internet is an extremely important tool in marketing vacation rentals, traditional marketing venues still can make a difference if you are looking to attract renters. You can create flyers with pictures of your house, prices, and a list of amenities that you can post in the town where your vacation home rental is located. This is an extremely inexpensive way to get noticed, but it is important to design your flyers with eye-catching images and easy-to-read text. You can also create postcards with this information that can be mailed to local households or placed in local stores for visitors and residents to pick up.Another option for marketing vacation rentals is to run advertisements in the classified section of any local newspaper. The downside to this is that you may wind up paying a lot for an ad that will only be seen by a limited number of people, but that same ad will be specifically targeted in the area for your vacation home rental and may get strong results.Preparing Your Vacation Home Rental PropertyNo matter how you choose to go about marketing vacation rentals, you will need to have photographs of your home taken to put on the web, in the newspaper, or in a flyer. Make sure that you prepare your home so that it looks its best – that the lawn is trimmed, that the pool area is tidy, that the windows are clean, and so on. Then, take a series of pictures from several angles of the home so that a prospective renter knows exactly what he or she will find. If you can, add something to your home that will make it stand out. For example, use brightly colored curtains, or take your photograph at night. Above all, make sure to give people a reason to look more closely at what you have to offer in a vacation home rental.

Word of MouthThe simplest and cheapest way for marketing vacation rentals is by word of mouth. Tell anyone and everyone that you have a home available. Tell your friends, tell your neighbors, tell the people at the bank and at the grocery store. While the person you tell may not be the next person to rent your home, he or she may have a friend or relative who is in the market for a vacation home rental.ConclusionAbove is just a small sampling of options that you have for marketing vacation rentals so that they are booked around the year. Future articles will give you more in-depth information about these options as well as additional tips and ideas about how to promote a vacation rental successfully.

Vacation Homes: A Great Option For Family Fun

It’s vacation time! Lots of great places to see throughout Southern California-Disneyland, San Diego’s Zoo and SeaWorld, the fabulous beach events along California’s Gold Coast-the list goes on and on. But hotels and motels are almost always booked in the summer. They also lack the home-friendly accommodations kids and teens need to feel at home. All the more reason why today’s families increasingly choose vacation homes when they vacation away from home.Close to Popular DestinationsMany vacation homes are conveniently close to today’s most popular vacation destinations. Being just minutes away from these fun vacation spots can save you a lot of local travel time. If not within walking distance, many homes are close to public transportation or vans and shuttles operated by vacation destinations.

The Feel of a Real HomeVacation homes are designed to feel as close to your real home as possible-much more so than a motel or hotel. Families are increasingly discovering that these homes can be very accommodating to children and teens. That’s because they often have two or three bunk beds and several trundles. These allow children to share bedrooms. A number of these homes also have four bedrooms, which can sleep as many as 16 (for sports teams and girl/boy scouts groups). Some homes even have sofa sleepers in the family room.Lots of Entertainment OptionsTo keep kids, teens and parents entertained, many vacation homes provide a wealth of entertainment options–something they need after a day of vacationing, The homes feature action-packed gaming consoles like X-Box, DVD players and smart TVs, Also included are Foosball, Netflix, and Wi-Fi access for smartphones, tablets and laptops. These connectivity options provide plenty of information and entertainment for all ages.Private BBQs, Swimming Pools, Relaxing SpasKids, teens and especially parents need to relax after a busy day on rides and adventures. Vacation homes allow families to do what they usually are unable to do in a hotel or motel-make burgers, hot dogs or steaks on a BBQ–in complete privacy. No need to reserve public BBQs or share space with strangers. Most homes come with a spacious outdoor dining table and lots of chairs. They also feature a relaxing spa and/or hot tub-for the exclusive use of the family.

Home Cooked MealsUnlike hotels and motels, which offer inflexible (and costly) menus, most vacation homes allow families to prepare home-cooked meals that fit the unique preferences of their health and taste needs. The homes feature fully appointed kitchens that come with stainless steel appliances, granite countertops and specious breakfast bars. The kitchens even include cooking utensils, dishes, flatware, pans, bakeware, and paper and cloth towels for added convenience.Affordable Cleaning OptionsHotel/motel laundry services can be really pricey for a family. Most vacation homes solve this problem by including a washing machine and dryer. Housekeeping services are also available to keep things nice and tidy while you’re vacationing.

The Top 7 Reasons Celebrities Are Flocking to Private Vacation Homes

It used to be that when celebrities went on vacation, they’d check into the biggest, fanciest hotel in town.  But these days, the rich and famous are skipping the big, public hotels in favor of a more exclusive, more private vacation option.  From Brad and Angelina, to Madonna, President Barack Obama,  movie, music and TV stars are spending their vacation time away from the crowds and the cameras, and hiding away in luxurious, private vacation homes.  Read on for the top 7 reasons why!1. PrivacyA vacation isn’t much of a vacation when you’re surrounded by adoring fans screaming for your autograph, or ducking paparazzi around every corner.  Which is why you don’t see major movie and TV stars spending their vacation time at hotels.  Instead, famous faces know that in order to really get away from it all, the key is to check in to a private vacation home.   Unlike hotels that cater to the public, a vacation home offers guests a real escape from the outside world, with a level of total privacy a hotel just can’t match.  So they can bare all by the pool without worrying about winding up on the cover of a tabloid next week.2. Space for their stuffThe rich and famous don’t typically travel light.  They may be heading out of town to get away from it all, but at the same time, they need to make sure they’re ready for anything – from lunch with the big-name director who happens to be in town to a formal dinner party on a yacht.   That’s why the stars tend to bring MORE than what they need, just in case.  Which is why they’re bypassing the big hotels and settling in to roomy vacation homes – where they have plenty of space for the tuxedo, the ball gown AND the scuba gear.

3. Room for an EntourageJust as they don’t travel light, celebs also don’t travel alone.  There’s the personal assistant, the personal trainer, the hair and makeup guy (or gal), plus family, friends, acquaintances and hangers on…in other words, more people than you can possibly fit in even the largest hotel suite.  And that’s why the stars are bringing the whole entourage to roomy vacation homes – where everyone can spread out and enjoy their time together.4. ExclusivityCelebrities like to stay on the cutting edge of trends – they don’t follow the herd and do what everybody else is doing.  Why should they, when they can afford to set the trends and set themselves apart from the crowd?  So instead of following the masses to whatever resort is popular each season, the stars prefer to create a vacation that is uniquely, exclusively theirs by escaping to a luxury vacation home.   After all, what could be more exclusive than your own, private paradise, reserved only for you and the people you want around you?5. Peace and QuietLet’s face it – people are noisy.   And people who have a lot of money to spend on fancy hotel rooms are no exception.  Their kids fight and splash in the pool.  They have parties at all hours of the night.   They argue, they laugh, they basically live their lives.  Which is fine for them.  But if you’re on vacation trying to get away from it all, it’s not necessarily fine for you.  No wonder so many celebrities are skipping noisy hotels altogether and opting to stay in peaceful, private vacation homes.  That way, if a wild party keeps them up all night, at least it will be their wild party!6. FreedomA vacation is the time to do what you want to do when you want to do it – and no one knows that better than celebrities, who are used to getting their own way.  But even the most luxurious hotel has limits.  Hankering for a late-night swim after the pool has closed?  No can do.  Feel like spending the day in your bathrobe without getting dressed?  You’ll not want to leave the privacy of your room if you stay in a hotel but a vacation home gives you the freedom to spend your vacation the way you like.  And if that means eating a grilled cheese sandwich in the pool at 2:30am, go for it!

7. LuxuryIn travel, as in their day-to-day lives, celebrities demand the best.  And they’re finding the best in luxurious, comfortable vacation homes.  Dining rooms where they can entertain friends.  Spacious living rooms where they can spread out and enjoy all the comforts of home.  Their own, private swimming pools and Jacuzzis.   With so many options, there’s no longer any reason to settle for less than the best.  Which probably explains why, when it comes to travel, vacation homes are topping the list of celebrity trends.So now you see why the rich and famous are making vacation home rentals such a fast-growing travel trend.  And the best part is, these advantages aren’t just for celebrities.

How to Purchase a Vacation Home With Friends or Family

You want a cottage by the sea, a chalet by a ski run or a lodge in the woods. But vacation homes are quite expensive, and most of us don’t have the time to care for a second home in addition to our primary residence? So, here is an idea: Split the financial obligations with a family member or friend! This article covers most of the important steps to learning how to purchase a vacation home.Partnering up sounds great on paper, but purchasing a vacation home with family and friends can be risky. After all, if things do not go well, it can spell the end of your friendship. Not to mention you may end up in a legal battle over the home. After all, you might already be commonly renting a vacation place with said friends or family. Or you could take turns using the house, so you don’t actually overlap.Still, this approach can also turn into an express lane to disaster if you don’t navigate the relationship with care and really learn how to purchase a vacation home.Do not panic! Before you sign on the dotted line, here are some important questions to protect your finances and also leave your ties of friendship or family intact.TIC or LLC?Ownership of property by 2 or more parties who are not married – friends, relatives (it makes no difference) can be setup as a limited liability corporation (LLC) or as a tenancy in common (TIC). And while setting up an LLC will entail hundred dollars in additional fees and a tad more paperwork. A limited liability corporation can make it easier to give away or sell an interest in the vacation home and you are treated like an individual for tax purposes, but with the extra protection of a corporate liability shield. An operating agreement will be drafted to establish the obligations and rights of the members in the LLC.

Why this is important when learning how to purchase a vacation home: Under a tenancy in common, somebody who’s injured while in your shared vacation home can sue you and the other co-owners for all you are worth. Additionally, due to the fact that you own a house with somebody else, you’ve less control over who can be allowed to enter the house. So if your nephew wants to celebrate his high school graduation with a blowout party on your vacation home, and somebody steps on a broken glass, it can come back to bite you. This is much less of a risk if you choose an LLC.Who is responsible for what?Another reason why you should set up a limited liability corporation instead of a tenancy in common: Limited liability corporations are normally required by law to have an operating agreement. You should have an attorney draft an agreement which clearly explains everybody’s ownership interest.That ratio, be it 80:20 or 50:50, will determine how costs like real estate taxes and insurance are divided. The agreement should also clearly explain who the manager of the vacation home is, capital improvements and how the maintenance of the home is going to be paid for and performed. The agreement gives the owners a guideline so that everyone knows before they own the place, what the parameters are.You can think of it as real-estate prenuptial agreement, it’s there to ensure that things run smoothly and head off resentment at the pass. Otherwise any under discussed issues- like who is supposed to close up for the season or even clean out the gutters – can quickly and easily turn emotional.Who gets which holidays and weekends?People purchasing a house together should ask themselves if the other owners plan on being at the house at the same time, or alternate in using it, since vacation homes normally have a prime-time of just a few months.Normally, everyone wants to go to the vacation home at the same time of the year, during school breaks for example. If the owners do not talk about this in advance it can lead to everybody showing up at the home on the same day- which isn’t exactly the tranquil vacation home you have always dreamed about.If you decide to split, you should work out an annual schedule in advance and also consider rotating who gets the major holiday weekends. You should also agree that swaps and changes can be made but only with the permission of all the parties involved.

To rent or not to rent? / How to purchase a vacation homeFrom time to time your vacation home is going to be unoccupied no matter how many co-owners you have. If you are a neat freak and do not like strangers sleeping in your bed, you’ll not want to rent your vacation home. However, your brother might want to make some cash by renting out your shared vacation home.You should hammer out whether you are going to rent out the vacation home so that you can generate income when you are not there. If all the parties agree to rent the vacation home just ensure where you are purchasing will allow that. Some communities do not allow short-term rentals.What happens if somebody wants out? / How to purchase a vacation homeYou should have at least one discussion about how long everybody wants to be on-board and what happens if one of the co-owners wants to sell. Giving the other owners right of first refusal if you want to sell your share is a way to reduce conflict. You should think about if you can afford to buy out a co-owner or if you’ll be able to cover the extra maintenance costs and mortgage in the event somebody wants out.

Should You Purchase A Vacation Home?

Summer has arrived, and for many families, that means getting away for a few weeks. While enjoying beautiful surroundings, warm sun or cultural enrichment, it’s easy to imagine how nice it would be to own a home that would let you do so whenever you wanted.But don’t let your imagination run away with you. Before you snap up a beach house or a mountain cabin, give the same thought to the purchase as you would to buying your primary home.The first question is whether you can afford a vacation home. Have you covered educational expenses for your children? Is your retirement secure? Is your emergency fund solid? Don’t rob yourself of essentials to cover a second home, no matter how great its potential as an asset. Even if you buy the property outright, you may not be able to access the equity for some time.A second home entails more expense than you might imagine. Beyond the purchase price, you will need to consider maintenance, security or a caretaker, utilities, property taxes, furnishings, travel costs and other items. You may also need to pay association or assessment fees. And if you intend to rent your property, you will most likely need to pay for advertising, and possibly for a property manager.Further, insurance can be a major expense. Property insurance for a second home often costs more than for a primary residence, and may be more difficult to obtain. The more the house will be vacant, the higher you can generally expect premiums to be. Insurers may also want you to pay more if you plan to rent the property. In areas where floods or hurricanes are possible, flood insurance generally must be added separately.When considering how you will finance the home, remember that second mortgages are usually more expensive than primary mortgages, as banks tend to believe that they are assuming more risk. Lenders may look at an applicant’s income, rather than general assets, which can make approval harder for retirees or those approaching retirement. Some buyers consider taking home equity loans on their primary residences to fund second homes, but this puts your primary home at risk.When deciding whether a vacation home is a practical purchase, estimate all these expenses to get an idea of the carrying costs for the property. If you plan to maintain the property mainly for your personal use, divide the costs by the number of days you plan to visit, so you can see whether renting a home or staying in a hotel might be sounder financially.Some people do consider a vacation home a moneymaking vehicle, or choose to use it for both personal pleasure and to generate income. However, counting on rental income to net a profit after expenses may not always be realistic. In a high-demand locale, such as a ski resort or a desirable beach, your chances are slightly better, especially if your property is within a three-hour drive or so of a major metropolitan center. But the fact remains that, while 25 percent of vacation homeowners say they intend to rent their second homes, only 15 percent do so. Those who do so profitably form an even smaller group.Perhaps the most important financial consideration is the tax implications of a second home. The primary factor affecting your personal tax situation for a vacation home is the property’s anticipated use. Will your second home be used only by you, your friends and your family? Is it practical to rent it to others seeking a vacation site? Specific tax rules for renting out your vacation home may help guide this decision.

You must first determine whether your vacation home is considered a residence or a rental property. The Internal Revenue Service considers your second home a residence if you personally use it for either 14 days a year or more than 10 percent of the number of days the home is rented out, whichever is more. Your use, a relative’s use or use by an unrelated party renting at less than fair price all count as “personal use” in determining the nature of the property.If your vacation home is considered a residence, certain deductible rental expenses may be limited. Renting a property that the IRS considers a residence does not qualify as a “passive activity” for the purpose of income taxes. This matters because a loss incurred from one passive activity can be used to offset the income gained by another. Since renting a second residence is not a passive activity, you cannot use any rental expenses in excess of your rental income to offset income from other sources.If the IRS considers your vacation home a residence and you rent the home out at least 15 days in a given year, you must characterize the division between rental use and private use. You must report all rental income in your gross income in addition to accurately dividing your expenses between personal use and rental use. Certain expenses, such as mortgage interest and property taxes, are usually fully deductible no matter how they are characterized, but are reported in different ways – to offset rental income if they are rental expenses or as itemized deductions if they are personal.Other expenses, including maintenance fees, insurance, depreciation and other costs involved with renting out your vacation home are only used to offset rental income when they can be classified as rental expenses. (A complete list of deductible expenses can be found in IRS Publication 527, “Residential Rental Property.”) The allocation to rental use determines the amount of your expenses used to offset rental income. If you rent the home for half of the year, then half of your expenses may be deducted against your rental income. Given the complications of this division, it is probably wise to involve a tax professional if you intend to use your property for both personal and substantial rental activity.If you do not want the burdens of allocating expenses and continually seeking renters, consider taking advantage of the preferential tax treatment the IRS offers for short-term rentals. The IRS permits you to rent your vacation home for fewer than 15 days annually without reporting any rental income in your total income, thus tax-free. Understandably, you may not deduct any expenses related to renting the home, as there is no reported rental income to offset. In this scenario, you would itemize all of your mortgage interest and property tax deductions on Schedule A.If your second home will be primarily for personal use, be aware of residency rules in the states where both of your homes are located if they are not the same. Reestablishing your residency can be useful, but is sometimes challenging. New York, for example, is notorious for finding ways to keep its former residents on the tax rolls. A former New Yorker may want to take advantage of Florida’s preferable tax climate, but it isn’t simply a matter of deciding it’s a good idea.While a timeshare may seem like a better idea on paper than buying a vacation home, the reality makes it unappealing for most people. In a timeshare, you pay a lump sum up front and maintenance fees thereafter. Atraditional timeshare then guarantees you the use of a specific unit at the same time every year (typically for a week, though it varies). Some newer timeshares operate on a points system, which gives users more flexibility in when and where they vacation, but also leads to competition for the best units at the most desirable times.Though a timeshare is cheaper at the outset than buying a vacation home, it does not offer the same equity or appreciation potential. In effect, you are simply paying for years of vacations in advance, not investing. Additionally, maintenance fees can increase, and most timeshares don’t have a built-in expiration date. Because timeshare property is notoriously hard to sell, this can leave you (and potentially your heirs) indefinitely paying fees on a property you no longer wish to use. You would likely do better to earmark a portion of your portfolio for an annual vacation rather than to purchase a timeshare. This would allow your assets to appreciate, and would avoid the risk of locking yourself into an agreement with no simple exit.If you decide to purchase a vacation home, several considerations remain. Location is crucial. Choose a region where you will want to be often – once a year or more – and possibly to the exclusion of other travel, depending on your time and resources. Rural areas can sometimes increase expenses; for example, insurance may be more costly if you are far from the nearest fire station. In addition, many desirable vacation properties are at increased risk for floods or earthquakes, further driving potential insurance costs up. If your desired property is abroad, review that country’s ownership laws and its history of honoring ownership claims from noncitizens.Finally, think ahead to the possibility of selling your vacation home one day. As soon as your use of the property declines, it is probably better to sell it to eliminate the carrying costs and free the capital for other purposes. You may use the house less than you expected, or you may have used it a great deal when your children were younger but less now that they have become adults. Regardless, getting the process under way as soon as you know you want to sell is important. The housing market is still relatively weak, so it may take longer to sell the property than you expect.If you rent your vacation home enough for it to be characterized as a rental property, you will want to recover the cost of the home through depreciation. Recovery of the cost for residential rental property under the General Depreciation System (GDS) spans 27.5 years. This capitalized expense can be used to offset rental income, thus lowering your tax bill. Deducting depreciation may cause a net loss on your rental property; however, since your second home qualifies as rental property and not as a residence, you can reduce other income from passive activities with the loss. Remember, if you visit the home on vacation, you may only deduct depreciation allocated to rental days.

When the time comes to sell your vacation home, note that the IRS will treat the sale differently from that of your primary home. Your vacation home does not benefit from the $250,000 capital gains exclusion ($500,000 if married filing jointly) that your primary residence does. If you have owned the property at least 12 months, any profit from the sale will be taxed at the long-term capital gains rate.In addition, if you claimed depreciation on the home due to rental use, you will need to refigure your cost basis to determine the gain. Even if you did not claim the depreciation deduction, you must still reduce the cost basis of the home by the amount of depreciation you could have taken. The portion of gain on the sale due to depreciation lowering your basis is considered depreciation recapture and will be taxed at 25 percent.A lose-lose scenario arises when selling a vacation home; you do not receive any of the capital gains exclusion mentioned above, nor do you receive any tax benefit if you realize a loss on the sale. For this reason, consider converting your vacation home to a primary residence before selling. If you make your second home your primary residence for two of the five years prior to selling, you will qualify for the maximum capital gains exclusion.If you want to keep the vacation home in the family rather than selling, it can cause some estate-planning complications. No matter how well your children get along, co-owning a property can lead to disagreements and hurt feelings, as can giving one child the home and another child an asset with less sentimental value. Even if your children share without issue, they may leave it to their children, resulting in a property split between eight or 12 cousins who may or may not know or like one another very well. Those who wish to keep the property may not be able to buy out those who wish to sell. All in all, it can create drama you may not foresee.In the case where selling the home is too painful or impractical during your lifetime, you can direct your estate to sell it and divide the proceeds among your heirs. Alternately, you can set up a trust for the property’s operating expenses, then grant your heirs use of it under certain circumstances. Whatever you do, make your desires explicit, both in your will and by discussing them with your children or heirs. Ideally, involve a financial planner or an estate-planning attorney. Put everything in writing.A vacation home can be a wonderful luxury, providing a place to get away from your day-to-day life and to build treasured memories with friends and family. As long as you think of it as a purchase rather than as an investment, you can make an informed decision about what’s right for you. Then, if you do buy a vacation home, you can approach it with realistic expectations and a good chance of enjoying it for years to come.