Obtaining the ability to purchase your dream vacation home is the goal of many hard-working Americans. Unless you are ultra-wealthy, it is likely that purchasing a second home for vacations is one of the largest purchases you will ever make. It is not easy to find the right vacation home, there are so many considerations to take into account. However, there are steps you can take to make your search more efficient. If you are in the mood to migrate, consider these four questions before buying a vacation home.
What Is Your Vacation Home's Ideal Location?
Your vacation home should be a reflection of what you like to do on vacation. If you are into snow sports like skiing and snowboarding, maybe a luxury mountain home is the right choice. If you like surfing and beach parties, maybe consider a beach getaway. Travel time is a big deal for a vacation house, so make sure that the location you choose is within your ability to travel in the time you desire.
Do You Want to Rent the Home?
The ability to rent out your vacation home when not in use can go a long way to help to pay the bills associated with having the home. Doubly so if it is in a high-traffic area. But not all vacation destinations share the same ability to be rented. An apartment getaway in Manhattan will be much easier to fill than a seasonal cabin in North Dakota. Take these considerations into mind before purchasing.
Can You Afford a Vacation Home?
Buying a vacation home comes with many expenses one would not consider up front. These expenses include maintenance and upkeep—which can be very steep in areas like beachfront properties or snow cabins. Insurance and homeowners fees can also add up. Many vacation destinations also impose a residency tax which charges homeowners that do not reside in the subject property.
Can a Vacation Home Improve Your Investment Portfolio?
Real estate has been an excellent gamble over the past 50 years, but prices are not constant everywhere. Vacation destinations in particular are known for wild property valuation swings—areas of Florida and Nevada being the prime candidates for fluctuations. Just like any investment, do your due diligence before purchasing a vacation home.
Buying a vacation home is the dream of many people—but if the purchase process is not managed correctly, it can turn into a nightmare. Follow these tips and do your research before purchasing a new vacation home.
In the Mood to Migrate? 4 Questions to Consider Before Buying a Vacation Home
Written by Lizzie Weakley Posted On Monday, 17 December 2018 12:13
Lizzie Weakley
About the Author: Lizzie Weakley is a freelance writer from Columbus, Ohio. She went to college at The Ohio State University where she studied communications. In her free time, she enjoys the outdoors and long walks in the park with her 3-year-old husky Snowball.
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