Imagine yourself on your dream vacation: The setting is perfect, and your days (and nights) are 100% carefree. It probably won’t be long until you start fantasizing about leaving your responsibilities behind for a simpler lifestyle, just like this.
Not to burst your bubble, but owning a second home isn’t as simple as being on vacation. Let’s look at some tips to ease the process of buying your very own piece of paradise.
Buying for personal use?
- Take all of the costs into account.
You won’t be at your second home year-round, so you’ll likely need a property manager. There will be costs for maintenance, and maybe even an HOA.
- Pick a place you know you’ll love for the long haul.
Is this really a place you’ll return to? It might be too distant to get to frequently. Or you may outgrow your love of the area. What’s grounding you here?
- Don’t make starry-eyed decisions.
Is this a financially sound decision for your family? Don’t buy purely on a whim while vacationing. Come home, level out and choose wisely.
Buying a rental property?
- Research the area’s regulations.
If you plan to rent out the property, make sure it’s allowed. Local regulations may restrict access to short-term rental services or prevent renting out the property at all.
- Don’t just buy what you like.
Make sure the home is attractive to prospective visitors. Learn what vacationers look for in size, aesthetics, location and amenities for the area, and confirm that the property meets those needs.
- Treat it as a job.
It’s essential to see your rental property as a genuine moneymaking opportunity. That means identifying the risks, long-term investment needs and rental legalities in advance of your purchase.
Take the guesswork out of the process. Get in touch to learn more about buying a vacation home.