7 Things To Consider Before Buying A Vacation Home

Many people dream of owning their own vacation home to which they can periodically escape. While the fantasy is good in theory, there are several issues that should be considered to keep it from becoming a nightmare.

Financing

Probably the first thing that should be done before buying a vacation home is to establish whether or not it can be afforded. This goes further than just paying for the home.

• Seek advice – Schedule a meeting with a financial planner or accountant to analyze the financial situation. Lifestyle, other debts, expectations for the home and willingness to take an investment risk all must be considered. There are also online mortgage calculators that can help.

• Maintenance – In addition to the mortgage, maintenance of the vacation home will cost money, as will utilities, insurance and taxes. If the home is too far away from the primary residence it may be necessary to hire someone to take care of the secondary house.

• Transportation and time – There will also be costs associated with getting to and from the new vacation home. Deciding how much time will be spent at the getaway can help determine whether the other costs are worth it.

Location

It’s an old real estate adage that when considering a home the three most important things are location, location and location. For the most part, that will be true when looking for a vacation property as well.

• Familiarity – Likely one of the best locations to consider is a place that has already been visited for a vacation.

• Amenities – Even if relaxation is the goal, make sure there are enough places of interest nearby to keep from getting bored. Also, there should be convenient stores close enough that it will not be a hassle to purchase supplies once there.

Options

There are a few ways to take the sting out of buying a secondary home as a vacation getaway.

• Timeshare – There are many variations of this arrangement but all of them mean buying the right to stay a certain amount of time in a house or condo in a vacation location. These work especially well for those who can plan their breaks well in advance. Be aware that buying into a timeshare is not an investment in real estate and, in fact, timeshare properties may lose their value. On the other hand, it is an investment in the peace of mind of knowing where and when the next several vacations will occur.

• Revenue – An owner could decide to rent out their vacation home to others when not using it as a way to get back some money. If the proper location has been selected, this could be fairly easy. Just keep in mind the possibility of upkeep and repair costs.

Buying a vacation home on impulse can turn the dream into a nightmare, but by following a few tips and planning ahead it can be an investment in relaxation for a lifetime.

About the Author:

Lucy Bishop is investigating her options when it comes to buying a vacation property and is considering the Ritz Carlton Destination Club for her next family vacation.