If you’ve ever spent time searching for a place to stay on a holiday weekend, you may have thought about how much easier life would be if you had your own vacation home. If so, you’re not alone in that thought process. An estimated 1.13 million vacation homes were sold in the U.S. last year, with vacation home sales making up 21% of residential transactions.
Whether you’re ready purchase the vacation home you’ve been dreaming about or you’ve just started crunching the numbers, you’re probably wondering what it might take to invest in a vacation property. Here are three simple considerations to keep in mind:
Determine what you want: Get the ball rolling by deciding what it is you’re looking for in a vacation home. Do you want a place to get away from the city? Is a home nestled in the woods what you desire or are you looking for something on the beach? Be sure to also consider how much space you need. Will you bring additional family and friends with you on a regular basis? Whatever property you ultimately invest in, make sure it checks all the boxes for your lifestyle, both now and in the future.
Calculate the costs: Fully understanding the costs associated with owning a secondary property is extremely important. Start by contacting a lender to determine what you can afford. A lender can help you calculate the combined costs of your primary home and your new vacation home. Don’t forget to also budget any personal costs such as furnishing, HOAs/condo fees, utilities, landscaping, etc.
Maximize the off-time: If you purchase a vacation home, you’ll likely still have a primary residence where you’ll spend most of your time. This means you’ll need to determine how you’ll use the property when you’re not there. Will you head to your vacation home every weekend or maybe even spend the entire summer there? Will your visits be limited to special occasions or holidays? Whatever the frequency is, it might make sense to use the property as a rental when you’re not enjoying it. If your vacation home can be used as a commercial rental, it’s a great way to cover a portion of your mortgage, and the other costs you’ll encounter along the way.
If you are interested in exploring the possibility of a vacation home, I can answer any questions you have and/or help you get started when you’re ready to take the leap. Contact me today and let’s talk about how we can together make your vacation home dream a reality.