When US News and World Report wanted information about the best approach for families wanting to purchase a vacation home, they contacted Greybeard founder, Chip Craig, to get a few ideas from him. As the article indicates, the most important aspects of the buying process are consolidating, communication, and compromise.
Contacted by US News, Chip points out that setting up a limited liability company or LLC prior to the purchase can make the most sense. And he notes that an LLC can set out the transfer of the property through generations upfront, especially if parents are buying with the idea of passing the home down to children. And as most of these transactions tend to be cash, setting up an LLC generally does not delay closings.
When families enjoy gathering in the same spot each year, it becomes logical that they might want to invest in their own vacation home, maybe even an NC mountain home. Owning a vacation home in a spectacular location allows families to have one central gathering spot and takes the guesswork out of where to stay as well. But as the US News and World Report article points out, that seemingly simple purchase can present some particular issues.
As stated in the article, in 2016, 12% of home buyers purchased vacation homes in the US. With different generations involved, it can become complicated when making plans for the smooth transfer of the property. Again, consolidating the home into an LLC can take care of some of the issues. One area that can become dicey is how to manage the home, if it enters the renters’ market when not in use by family. Who’s going to get the proper insurance, who’s going to clean it, and who’s going to manage the reservations to make sure it isn’t double booked? One option is signing on with a rental management company, like Greybeard Rentals that can take over the detailed responsibility for that. And even that plan should be decided prior to a vacation home purchase. That’s where the communication piece comes into it. Sit down and really talk about what’s important, what works, and what everyone sees as the longer-term plan for a shared vacation home. And of course, that’s where the compromise comes in. Be willing to listen to each other and be willing to work together to get a great plan in place.
If you’re all ready to move forward, why not take a look at Greybeard Realty’s vacation home listings. We have a number of homes available, many with a proven rental history. If you’d like to talk more about purchasing a home as a family or even with friends, feel free to touch base directly with Greybeard Realty, and we would be happy to work with you through the process. Family vacations homes generates memories and traditions that will not be forgotten.