People have many different definitions on what their ideal vacation home looks like. For some a vacation home is a Cape Cod style beach house on the water, a rustic log cabin in the forest/mountains, or a swanky hipster condo in the city. If you are thinking about buying a second home, ask yourself these four questions.
Can I afford a second home?
There is a lot to consider when buying a second home. Not only will you have to factor in a second mortgage but all the other bills that come with a house. Utility bills and tax increase for a second home that is a non-primary residence, are just a few of the ongoing costs that will need to be factored in while budgeting for a getaway.
What is the best location for my vacation home?
Often times people imagine a vacation home far, far away from their current reality. One thing to keep in mind when looking for that perfect location is to ask yourself, “How often will I be able to visit?” If the location you want is halfway around the world you’ll need to factor in the cost of getting there as well as purchasing the home. If it costs more than the purchase price, to visit your home multiple times a year, it may not be worth it to buy.
If you plan on using the home for a rental or already spend a lot of time in your destination area, then it may be worth it to buy.
How much maintenance will be required?
While factoring in all the costs, remember to include routine maintenance and repairs. If you decide to turn your vacation home into a rental price out any Insurance, safety obligations, and or requirements in that area. For locations that require airfare, you may think about hiring a property manager. They will be able to handle any maintenance issues that may occur. Be sure to factor in the added cost of hiring someone.
Will I be able to enjoy my own home?
After doing all the research and mapping out potential costs for your vacation home the next step to take is contacting an agent. If you are planning on renting out your home while you are away, be sure to keep a schedule that allows you to visit when you want to. Remember, this home is yours. The getaway that you scrimped and saved for. You’ll want to make sure you are able to enjoy the fruits of your labor.
There are many perks to buying a second home. In the long run, if you visit the area frequently, it is more cost effective to buy rather than rent. The most important thing to keep in mind is, your vacation home is for you and it should be a place you can go to escape reality. It should be a place to unwind, relax, and make memoires with loved ones.