We all dream of it; owning our own vacation home, maybe somewhere on the beach or a ski condo we can bring the family to. While owning a second home in an ideal location can be a great long-term investment, there are certainly things to consider before committing to the purchase.
Commitment to Location: With so many vacation rental sites that allow you to hop from destination to destination, owning a home in one solitary location is a big commitment. Make sure that you are head over heels in love with where you choose to buy your second home and have spent a significant amount of time there already.
Remember, it is Still a House: Just because your vacation home is the destination for relaxation and having a good time, don’t forget the amount of maintenance that comes with owning a home. Some houses may require several days of preparing it for a particular season. Keep in mind some of your vacation days will be spent working on the house just as you do at your primary residence.
Who Will Be There When You Are Not?: The additional costs of a vacation home can often be offset by making it available to renters. Take into consideration who would manage the property when you weren’t there. Are you close enough to act as landlord and prepare it for when guests arrive? Or will you need to hire a management company? Take into consideration the time that you want to spend in your home. If you make it available to renters, are you willing to give up some of the peak season, depending on the location of your vacation home, in order to ease the financial burden?
Travel Time: Similar to loving the location of your second home, it’s also important to consider how difficult the journey to it will be. Are you able to hop in the car and drive a couple of hours to be there, or do you need to get a flight whenever you want to enjoy it? Nothing ruins a vacation more than wasting a day or two just to get to your destination. Be realistic with how often you will be able to use your vacation home.