WHAT IS A VACATION HOME?

A vacation home is simply a secondary dwelling. This type of property is specifically meant for recreational purposes which includes vacations and holidays. This isn’t the principal residence of the owner. Vacation homes are ideally situated at a different location and not in the same spot as the owner’s primary home or residence.

For most part of the year, vacation homes aren’t used by the owners. Most owners turn their vacation homes into a passive income by renting them out on Airbnb. Since vacation homes have a higher chance for default by the owners, they tend to come with mortgage risk. 

LETS TAKE A DEEPER DIVE INTO VACATION HOMES

The principal or primary property refers to the property the home owner frequently lives in. A primary home type can be a condo, a townhouse, an apartment, and also a trailer. In order for a property to qualify as a primary property, the home owner would have to live in that property for at least a year. This applies even if the homeowner is an individual, a couple or even an entire family. 

A vacation home however is very different from a primary residence and it is often referred to as a second home. Vacation homes are usually not in the same location as the primary property. A home owner would ideally use this property a few days or weeks in the year for vacation purposes. Just like primary properties, vacation homes come come in the form of townhouses, condominiums, apartments etc. However, most people prefer their vacation homes to be condos and cottages.

Vacation homes not only provide their owners with the ability to have a great get away spot but they can also serve as a means of having a passive income by being rented out whenever they are not being used. For example, a family in Brampton might have a vacation home in Pickering and rent out their vacation home to residents of Pickering anytime they are back in Brampton.

A VACATION HOME VS. AN INVESTMENT PROPERTY

Even though most vacation homes are considered to be investment properties, not all of them qualify to be one. As mentioned above, a lot of home owners use their vacation homes as another stream of income by renting them out when they aren’t being used. However, someone who buys an investment property solely through rent and also for reselling the property at a higher price in the near future.

Investment properties can also be commercial real estate properties and not just homes. Real estate lawyers in Brampton can always guide you on the best approaches to take when you’re in the market for a vacation home. Just like any other property, there are a lot of legal document and property laws that come with it. For buyers to not get overwhelmed, real estate agents as well as real estate lawyers are always lending a helping hand to make the buying as well as selling process very easy for the buyer and also the seller.