These Are 4 Things You Should Keep In Mind A vacation home can be a fantastic investment. If there's an area that you go to every year for vacation, then purchasing a vacation home may be more sensible than always having to find a place to rent. Having your own vacation home means that you never have to plan that far ahead since you won't have to deal with finding and booking a place to stay ahead of time. However, before you decide to invest in a vacation home, there are a few things that you should consider. The following are four tips to keep in mind when buying a vacation home.
1. Spend some time in the area - If you've been vacationing in the area in which you plan to purchase a vacation home for a few years already, then you probably already know that you'll make plenty of use out of your vacation home. However, if you've never been to that ski village or that beach town where you are planning to buy a vacation home, you should be sure to spend some time there first to make sure that you actually enjoy the area. You don't want to end up with a vacation home that you never use because you go tired of its location.
2. Understand the costs of owning a vacation home - A lot of buyers don't understand that the costs of owning a vacation home are often different than that of owning a primary residence. First of all, you're still going to have to pay for utilities, landscaping and maintenance costs even if you're not there. And don't forget that you're going to need to furnish it as well unless you don't mind spending your vacation in an empty house. Additionally, your homeowners insurance is probably going to be higher since there's more risk associated with insuring a house that's not occupied for most of the year. In fact, you'll probably want to hire a local property manager in order to maintain your vacation home throughout the year if you're not going to be there most of the time.
3. Consider renting out your vacation home - One of the ways that you can make up for the cost of the vacation house is by renting it out. In fact, rental income can allow you to build equity and let you pay the mortgage off early. Be sure to speak about the ability to rent the vacation home out with your real estate agent. Understand that even though this is a great way to recoup some of the money that you are putting into buying the property, renting it out will require a lot of responsibility on your part -- you will be the landlord, after all. You should also be aware that many of the people that will want to rent out your vacation home will want to do so during peak holiday times, which means you may not be able to spend some of those holiday vacations in your vacation home if you're renting it out.
4. Don't forget about accessibility - Your vacation home may be a dream house in an absolutely gorgeous piece of beachfront property, but if it's all the way across the country, then you probably won't be heading out there for a long weekend any time soon. If your vacation home is within the state you live in -- or within a day's drive at least -- you'll probably make more use out of it. Also keep in mind that the further away it is, the more it's going to cost to get there.
A vacation home can be a great investment for you and your family. However, before you go out and purchase a secondary property to be used as your vacation home, be sure to keep these four tips in mind. The last thing you want to do is end up with a vacation home that you never use, after all.