Should You Buy Housing in Kelowna For a Vacation Property?
Housing in Kelowna is perfect for a vacation home. The nightlife, outdoor activities, and culinary hotspots make Kelowna a top destination for many tourists. If you have been toying with the idea of buying a vacation property, we’re here to help! Buying a second property is a big decision to make. Before you go ahead and buy an additional home, there are some things you need to consider. Follow along below to learn more about the pros and cons of owning a secondary home.
Questions to Ask Before Buying Vacation Housing in Kelowna.
A vacation home does not provide you with an escape from the costs of owning a second home. In most cases, a vacation property can cost you the same, if not more, than your primary residence. Making sure that you are financially healthy enough to afford two properties is necessary. Otherwise, you could incur significant financial problems along the way.
Vacation property owners must also consider the additional taxes each year. A second home means double the property taxes. And, if your vacation property happens to be on the water, you can expect those taxes to be quite high. Furthermore, you will have to pay for any maintenance needed, insurance, and strata fees (if applicable). For those looking at purchasing a condo, townhome, or inside of a gated community, you can expect to have some kind of strata fee.
The cost of insurance on a secondary home can be significantly higher than you might expect. Depending on location and amenities, your insurance alone might cause some financial strain. Potential hazards like fires and floods or amenities like pools and spas can affect the rate of your insurance.
Even if you are comfortable financially, it is important to understand the risks of buying a second property. The additional strain on your wallet is something to be aware of as move forward in your decision.
How Will You Use Your Property?
Determining how you will use your vacation housing in Kelowna is equally as important as how you will afford it. If you aren’t going to end up using the vacation property, it probably isn’t worth the investment. Check your calendar to determine how often you might be able to visit the property. For those who work remotely or travel often to Kelowna, you will likely get your money’s worth. Additionally, it is important to note how far your primary residence is from your vacation property. A short commute is going to mean more use out of your secondary residence. This is because it is less hassle, less planning, and a lower cost of travel.
In addition, you must consider who will watch over your home while you are not using it? Finding a friend or relative who can check on your home is essential. This will help you keep on top of maintenance. The last thing you want is a pipe to burst or someone to vandalize your home while you aren’t there.
Lastly, if you plan to rent out your home while you are in your hometown, there is, even more, to think about. Kelowna has several laws and regulations surrounding rentals. Short-term and long-term rentals are not treated equally and it is important to know the difference. Short-term rentals have extensive restrictions in Kelowna. This is because of the growing popularity of short-term rental platforms such as Airbnb and VRBO.
Renting out your home come with a whole new set of risks and responsibilities. Depending on the tenant, you can run into some complicated issues. Renting also puts your home is also at a higher risk of being damaged. Moreover, taxes are often complicated by using your home as a rental property.
Additional Pros and Cons.
- You will get to enjoy more time in a location you love
- You will have all of the comforts that your own home provides
- There is a chance to make money through rentals
- Can provide a residence to your child if they’re attending university at UBCO
- Owning a second property can cause financial stress
- There are various risks associated with owning a vacation home
- Rentals can quickly go sideways
- Managing two properties is a difficult task to undertake
- Will the cost of the second home affect your ability to travel elsewhere?
Contact Us About Vacation Housing in Kelowna Today!
Kelowna’s market for vacation housing is exceptional. Making the move to purchase vacation housing in Kelowna can be a great future investment. For more information on buying a vacation home in the Kelowna area, contact us today. We’d be happy to help you find the perfect place to call home in such an amazing city. Feel free to reach out with any questions or concerns that you may have about buying a vacation property in Kelowna. Be sure to check out our social media here for the latest updates and more. We look forward to hearing from you soon!