Thinking of buying a vacation home? Keep these factors in mind!

Avoid making bad purchases when buying vacation homes. Learn how to assess construction quality, land rights, and legal status to make a smart purchase.

The location is great. You’ve checked everything off your wish list. You feel a connection with the vacation park. But then you suddenly notice a crack in the wall, discover the lot is on leased land, or find out the chalet is older than advertised. How do you keep your dream from turning into a nightmare?

If you’re buying a vacation home, you need to know more than just where and why you’re buying. You also need to understand what you’re buying—both from a structural and legal standpoint. In this blog (based on Lesson 3 of our home-buying course), you’ll learn what to look for to ensure you’re buying a quality property and avoiding hidden risks.

Legally, a vacation home can be classified as personal property (such as a portable chalet) or real property (such as a home with permanent foundations). This distinction determines, among other things, whether you pay transfer tax and property tax, how easily you can finance the vacation home, and how attractive it is when resold.

A chalet may initially be classified as personal property (for example, when it arrives at the construction site on a truck), but once it is permanently installed and set on its own foundation on private land, it is usually considered real property. If it is located on leased land and there is no long-term right of use, it often remains classified as personal property.

Therefore, pay close attention to the foundation, the type of land, and the terms of the contract regarding the use of the land. Is the home permanently attached to the land, do you own the land, or is the land lease legally well-structured? If so, this will increase your financing options and your long-term security.

Vacation rentals come in various styles, each with its own characteristics:

Traditional construction, using brick or concrete, generally offers the greatest durability and retains its value best. These homes are well-insulated and low-maintenance, but they are also more expensive to purchase.

Chalet construction, often modular and mounted on a chassis. More affordable and quick to install. The lifespan may sometimes be shorter, and the potential for appreciation is more limited.

Prefab homes combine the best of both worlds. They are installed quickly, are well-insulated, and are often energy-efficient. However, there is less room for customization than with traditional construction.

Wooden construction has a warm, inviting look and is often produced sustainably, but it requires more maintenance and is more susceptible to wear and tear and fire.

Not every vacation home is built on its own land. This affects your freedom, annual costs, and appreciation in value.

With a freehold property, you are the full owner of the lot. You have maximum security regarding access to and continued use of the vacation home. This makes it more attractive for resale, but you do have to pay property tax, and the purchase price is generally higher compared to homes on a leasehold lot.

A ground lease means that you purchase the right to use the land for a specific period, often 30 to 99 years. The costs are often lower than for freehold land, but there are restrictions on what you can do with the land and the structures on it. The ground rent may also be adjusted periodically.

With leased land, you rent the lot from the park or the landowner. This makes the purchase inexpensive, but it’s often less secure as well. The lease agreement may end, or the rent may increase. This doesn’t necessarily make a vacation home on a leased lot a bad choice, but it’s extremely important to lease the lot under favorable terms (which are set out in writing). Always check whether establishing a notarial right of superficies is permitted. Also ask about the park regulations and any easements encumbering the land.

There are a few things you can check in advance to avoid any surprises:

• Look up the address on kadastralekaart.com to find out the lot size, the built-up area, and the ownership status.
• Look at the aluminum strip inside the glass: that's often where the date of manufacture for the insulated glass is printed.
• Check the maintenance log for the boiler or heat pump to determine its age.
• Ask to see the energy efficiency label, especially for larger or newer homes.

With these initial checkpoints, you'll quickly know whether the property is worth seriously considering.

Hidden defects can occur in existing homes, especially if they’re a bit older. Consider, for example:

• Water damage at roof edges or gutters
• Stagnant water on flat roofs
• Moisture Problems or Mold in the Floor and Bathroom
• Discoloration of Plastic Facades Caused by Sunlight
• Loose or rotten parts of the fender
• Cracks in ceilings or walls
• Outdated systems or poorly insulated windows

If in doubt, it’s a good idea to have a structural report prepared, especially for homes older than 15 years. Newer homes are often built to require less maintenance and are therefore slightly less risky.

Many vacation homes are sold “as is.” This means that the seller is not always liable for defects that you could have noticed during the viewing.

Nevertheless, as a buyer, you do have rights in the case of so-called hidden defects—provided the defect is serious enough and the seller was aware of it or should have been aware of it. Examples include leaks, structural damage, or defective systems that interfere with normal use.

New construction often comes with a warranty covering construction and mechanical systems: 2 years for minor defects and up to 10 years for structural defects.

Anyone buying a vacation home wants to be able to enjoy it or invest in it with as little worry as possible. That’s why it’s essential to know what you’re buying—both structurally and legally. By researching the issues described here in advance, you can avoid surprises and buy with confidence. And that’s what it’s all about in the end!

Browse our listings or feel free to contact us for personalized advice. At Select Vacation Real Estate, we’ll guide you every step of the way.