Today we are discussing the benefits and added financial responsibility of purchasing a vacation home. Owning a vacation home by the ocean, next to a golf resort, or in the mountains could leave you financially vulnerable if you are not aware. There is definitely more to buying a vacation property, than having a place to relax. Weather you purchase a single family home, townhome, or a condominium, there are many things to consider in determining if it’s better to buy a vacation property or simply rent a property. First consider whether you will occupy your vacation home as a second home exclusively. Also consider if you plan to rent it out to others when you’re away.
Having a vacation home can be luxurious and convenient for whenever you want to get away for a while on your vacation days. You can pick from many locations because a job in a certain area doesn’t matter when you’re on vacation. You can let your love of different things and weather, guide you if your wallet can handle it. A vacation home might have all the things you
imagined in your own personal paradise. But again it does come with a price. They do come in different price ranges and styles. You can buy a fully functional vacation home or one that needs some work. Either way you won’t be there all the time to enjoy it and you still need to maintain it. Having a tenant can wear things out a little faster but they will usually tell you when something isn’t working
properly so you know right away when something needs to be fixed, rather than to leave your precious home vacant and not know if a pipe had burst or a window was broken. These issues can be monitored with certain security systems so if you can afford to not have a tenant then you can stay up to date on the needs of your home with the right technology.
Here are some other important considerations. Home values can fluctuate and change over time. This means property values can decrease. Every community and situation is different so it is important to keep this consideration in mind. You may have other expenses in addition to your monthly mortgage payments on the property. These could include but are not limited to homeowner association dues, cleaning services, flood insurance, utilities and maintenance services. Carefully consider your monthly cash flow to insure that you’re able to manage the additional expenses. You will need to calculate the amount needed for closing costs in associated expenses such as repairs, cosmetic improvements, and furnishing for your vacation home. You could also save some money by buying a vacation home that needs some renovations, which you could do yourself or find a reliable contractor to handle. Depending on the amount you spend on accommodations, owning a vacation home may be less expensive in the long run. You may decide to rent your property out while you’re away which can generate additional income. Help ensure your vacation home is restful and enjoyable by carefully thinking through these considerations.