Owning a vacation home can be a great investment, but there are some things you should keep in mind before making a purchase. Here are a few factors to consider before buying a vacation home:
● Large financial investment: Real estate in popular vacation destinations usually sits on the higher end of the price range. Discuss your budget with your real estate agent and what you’re realistically willing to put down for a home. Owning two homes can also mean doubling the cost of almost everything – including utilities, home insurance, mortgages, homeowners association fees and property taxes.
● Property maintenance: Whether you plan for your vacation property to be a family home or rental, you’ll need to properly maintain the home when you’re not using it. If you plan for a third party to take care of the maintenance, make sure to include it in your budget when looking at potential homes.
● Real estate value: Real estate values vary depending on location and the state of the market. Discuss with your real estate agent whether it’s a good time to invest in your desired location.
● Reliability: A vacation home offers the reliability you may want when planning your vacation trips. Instead of dealing with various travel expenses, you’ll only need to pay for transportation to get yourself to your piece of paradise.