Looking for a new recreational property is an exciting time. Not only are you expanding your real estate portfolio, but you’re also finding a place you can call your home away from home. Chances are you’ve dreamt up everything you want in a property geared towards relaxation, serenity, and exciting adventure.
Before you get too ahead of yourself, though, there are certain things you’ll want to get taken care of. That way, when you start hunting for the perfect place, you’ll be prepared and ready to make an offer as soon as you fall in love with a vacation property.
Get a Pre-Approval
Getting pre-approved before you start your search is vital because it allows you to iron out a realistic budget. Without this, you may get caught up in places you can’t reasonably afford or sell yourself too short, at the risk of not being able to get an adequate loan. If you want to know what you’re working with and what properties you can add to your wish list, getting the pre-approval is the first step in making that happen.
Geographic Research
Areas where people buy recreational properties all have their pros and cons. Knowing what’s good and bad about the neighbourhood you’re looking into is essential so there are no surprises when you finally pull the trigger on a property.
Is it close to a body of water? Does that matter to you? Is the area meant for families, or is it a college-kid hangout? All these questions must be answered before jumping in with both feet, and there’s no easier way to get acquainted with an area than doing your research.
Don’t Underestimate a Neighbourhood Drive-Through
Building upon your geographic research, why not drive through the neighbourhood you want to buy in? A neighbourhood drive-through is a casual way of getting a feel for the area without feeling too much pressure. You can talk to the locals about what they love and dislike about the area to get a natural feel for the people and neighbourhood you’ll be vacationing.
Check on the Land Transfer Tax
Land transfer tax varies significantly depending on where you’re looking to buy and what the property offers. In some cases, the cost of transferring land can seemingly come out of nowhere and be much more than you planned.
If you want to prepare for everything that will come your way when purchasing a new recreational property, knowing a rough estimate of the land transfer tax will ensure that you’re ready and can afford it.
Ensure Your Credit is in Good Standing
Your credit is the only thing standing between you and the loan you need to purchase a recreational property. Even if you think you have good credit, some things can sneak up on you and change your credit score if you’re not careful. Before you look at new properties, you’ll want to ensure that your report is in as good standing as possible. That way, you won’t be denied a loan after finding the property of your dreams.
Finding a recreational property is exciting, but certain things can quickly turn that excitement into anxiety. To avoid that, prepare yourself as best as possible before your search, and you’ll be ready to buy your dream place once you find one that suits you and your needs best.
If you’re thinking of looking for a recreational property in Collingwood or in one of the surrounding areas, or know someone who is, give me a call and let’s find you your dream property.