With the second home market trending upward, many people have begun to entertain the thought of owning a dream vacation home of their own. Whether in the mountains, near the water or even in the desert, vacation homes can offer more than just a refuge from the rush of daily life; they can provide lasting memories, offer a place to retire and even pay dividends as a rental property.
However, purchasing a second home is, of course, not something to take lightly. There are many important aspects that come into play when deciding on whether a vacation home is right for you and your family. The real estate experts at Forbes gathered a few key questions to ask yourself before making the big decision. For example:
Can you afford it? While buyers may be able to afford the actual price tag of the vacation home, there are other costs that need to be considered. A good rule of thumb is to budget at least one percent of the home’s purchase price for annual maintenance. So, if a vacation home cost is $500,000, the property owner should set aside $5,000 per year for common pop-up costs like plumbing repair or a new furnace. Also, buyers shouldn’t forget about insurance costs. Typically, a vacation home can cost about 20 percent more for insurance when compared to a primary residence.
Why are you buying? Is this an investment property or a place where you hope to see your grandchildren grow up? Are you hoping to rent the property or use it exclusively for your family? Do you think it will simply save you on those cumulative hotel costs? It’s important to examine your own logic and weigh out […]