What You Need To Know Before Buying a Vacation Home

Buying a vacation home is a significant accomplishment that can also be a source a joy for you and your family for years to come. However, owning a second home is also a responsibility that you’ll need to be prepared to take on.

In this article, we’re going to talk about some things you should ask yourself before buying a vacation home. It will help you solidify whether or not you’re making the best decision so you can enjoy your time in your new home away from home.

What do you love about the area?

Most people who buy a vacation home do so because they’ve fallen in love with the area. Maybe it’s where you can practice your passion for skiing, or maybe it has all of your favorite restaurants and places to relax. Regardless of the reason, you’re going to want to make sure that this is truly the place for you.

How much time will you spend there?

If your plan for your vacation home is to spend a couple weeks a year there and leave it vacant the rest of the year, it might not be the best investment. You could be better off staying in a hotel those few weeks a year.

However, if you’re buying a home with the intention of renting it out when you’re not staying there, having a vacation home can be a source of income. On top of that, if the house is in an up-and-coming area, you could be building a lot of equity that you can later take advantage of if you choose to sell.

Do you know all of the costs?

Do you ever feel overwhelmed with all of the bills and taxes you need to pay for your house? The same will be true of your vacation home. And, if you aren’t there enough, you’ll also have to pay someone to maintain the house and property while you’re away. Some costs to consider: closing costs when you purchase, property taxes, home insurance, heat, electricity, landscaping, cleaning, and trash removal.

Are you aware of the rules?

If you’re planning on renting out your property, it would be awful to find out that there’s a clause in your contract or with the homeowner’s association saying that you can’t rent it out. Similarly, some small properties have rules against parking RVs in the driveway, having structures (like sheds) in the yard, and even prohibit you from working on vehicles in the driveway. Make sure you know all the rules before you agree to buy the home.

Are you prepared for emergencies?

Whether it’s a flood, fire, avalanche, or burglary, you’ll want to make sure you’re ready. Insurance may be able to protect against some of these but there’s always a risk of serious damage.