Whether you’re looking for a place to escape the cold winters, or somewhere to relax and enjoy the sun all year round, buying a vacation home is a great investment. Here are some tips to help you find and purchase the perfect vacation home for your needs.
Location, location, location
When it comes to vacation homes, location is key. You want to find a location that’s convenient for you and your family and that offers the type of activities and scenery that you’re looking for. Do your research before you buy to make sure you’re getting the most bang for your buck, in addition to cities that have proven to be worth investing in.
Think about how many people will be using the vacation home and what type of space you’ll need to accommodate everyone comfortably. Again, doing your research ahead of time can help you avoid any unpleasant surprises down the road.
Owning a vacation home can be a lot of work, especially if it’s not your primary residence. Be sure to factor in the cost of things like landscaping, painting, and repairs when you’re budgeting for your new home.
Furnishings and decor
One of the best things about vacation homes is that you can personalize them to your taste. But that also means that you’ll need to factor in the cost of things like furniture, window treatments, and decorations when you’re making your purchase.
Taxes and fees
Don’t forget to budget for things like property taxes, homeowner’s insurance, and HOA dues or fees. These can add up quickly, so it’s important to factor them into your overall costs.
Consider your financing option versus purchasing with cash
Some people will purchase their vacation homes with cash, but many will finance their purchases by taking out a mortgage. Vacation homes are considered “secondary residences,” which means they come with slightly different rules and regulations than primary residences. This means that you’ll likely need to make a larger down payment than you would for a primary residence – typically 20 percent or more. You’ll also probably be charged a higher interest rate since secondary residences are considered more of a risk.
Another important thing to keep in mind is that you may not be able to rent out your vacation home when you’re not using it. Some lenders have strict rules about this, so be sure to check with your lender before you finance a vacation property that you plan on using for short-term rentals.
If you’re in the market for a vacation home, there are a few things to keep in mind. By following these tips, you can make sure that you find the perfect property for your needs and budget. It’s also helpful to enlist the help of a real estate agent in the area you’re looking into before you start looking. If you plan on financing your vacation home purchase, you’ll also want to get pre-approved for your mortgage as an initial first step. This way, you’ll have a better idea of what your vacation home budget is. Have fun on your search!