When buying a vacation home, it's important to see it as a business, just like any other. It should be managed and analyzed like a company.

Before you buy, you need to decide whether you're going to use it for your vacation, as a second home or just as an investment. This will make a difference when you apply to the bank for financing.

If it will be a second home, the bank understands that generating profits will not be the main objective and the entire financing process, including interest rates, will follow the same model as your main property.

But if the property is used primarily as a source of income, the bank will investigate the rental history, values and profit potential of the property. This will define your ability to bear the financing costs and, consequently, the interest rates.

Don't forget. Location, location, location!

Otherwise, the buying process follows almost the same path as a traditional property. Choose a good realtor, think about locations that are more attractive to tourists, analyze values and potential returns and make a conscious investment.

Last but not least, before you buy your property you need to check the rules of the condominium / residents' association and also of the city. In many places, short-term rentals are not allowed and this would defeat the whole purpose of the investment. Be vigilant and ask your broker to help you with this.

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