Investing in Vacation Homes Near Niagara Falls 2023 – Niagara Falls is one of the most famous vacation destinations in the entire world. It is often featured in box office movies and television shows as it is one of the many wonders of the world on people’s vacation bucket lists. This would make it a sound investment for a vacation home right?
Here are Four Good Things to Know Before Purchasing Vacation Homes in Niagra Falls
Do lots of homework on specific locations
If you are purchasing a vacation property in the Niagara Falls area it is probably because you have already fallen in love with it or have considered its popularity and the possibility of renting. If you plan to use the home for your personal vacation needs it is good to think about what you want from your vacation home.
Even a small city can have very different attributes about each tiny neighborhood. For example, one might come with a lot of noise and foot traffic but it’s close to many popular amenities in the town that you could walk to.
It is also good to remember that properties in locations closer to desirable activities will come at a higher price tag. It is a good idea to decide how close you want to be to things and how busy you want the atmosphere around your property to be.
Remember that the seasons play an important role
With any vacation home destination including the Niagara Falls area, the time of year will take a big toll on aspects of your vacation property. If you hope to have a lucrative vacation rental and are trying to keep occupancy fairly high throughout the year you may want to plan for times when there are slow seasons of tourism. Every spot on the map has them.
For outdoor destinations often the most popular time of year to visit is the summer. Make sure to study the tourism numbers in Niagara Falls so that you can make a proper rental plan and adjust your financial outlook for times when the area is traditionally quieter. You want to form a game plan such as offering special incentives to get renters into the property at slower times.
When you plan to use the property for your own as well as rent it is also good to be aware that properties in highly desirable areas will pretty much be blacked out for personal use during peak traveling time. You could set aside time for yourself during peak travel season but you have to decide if it is worth letting go of the lucrative rental income.
Financing the vacation property
Qualifying for a vacation home mortgage loan is different than qualifying for a traditional mortgage loan on a primary first home. If you plan to rent the property out it will be considered as an investment property if you rented more than a certain number of times per year. This will mean that you will need to prove the property has a great potential for making rental income.
You may want to sit down with a knowledgeable financial advisor before seeking mortgage approval and then shopping for vacation properties in the Niagara Falls area to determine if properties in your target locations have lucrative and promising business models. The advisor can help you to draw one up to take to a mortgage broker to discuss your loan options. Be prepared to also have a larger down payment.
Insurance is Crucially important
Just as with your first home you want to make sure a vacation property is well insured. This is especially true if you plan to rent out the property to strangers. Making sure that you have all of your bases covered especially should a renter sustain an injury on the property is very important.
For more information on available real estate in the Niagara Falls area, such as Lewiston New York, please contact us anytime.