It's only natural to dream about having a house that you can tap whenever you want to come back to your favorite vacation spot. Make sure you're following all of the below advice!
Do’s:
Understand your reasons for wanting a vacation home
Choose one that maximizes the benefits and minimizes the costs for you, personally.
Consider added costs
Additional insurance, taxes, utilities, and more can add up to cost more than you anticipated.
Hire a local agent
Local agents can help you find homes that will meet your specific needs, especially if they've worked with out-of-town buyers regularly.
Research rules and regulations
Planning on renting your home on Airbnb? You’d better make sure you’re buying somewhere that allows you to do that.
Think twice about timeshares
A timeshare might seem like a dream investment, but it might not break down to a good strategy for you.
Buy with the market in mind
Markets don’t go up, up, and up forever; they’re cyclical. Look at the market where you’re buying and take it into account.
Shop in the off-season
Seasonality is hugely important for people who live in vacation locations, and as a potential homeowner in one of those spots, it will become hugely important for you, too.
Plan for emergencies and vacancies
There may be natural disasters and seasonal slowdowns, so make sure you’re giving yourself some financial wiggle room for all the possibilities.
Be realistic
Maybe you want to retire here, but will your health truly allow it? Make sure you’re thinking clearly around your vacation home.
Don’ts:
Go over-budget
Even if you're planning on renting out the vacation home to help cover the costs of ownership, this isn't always a sure thing.
Buy a plot of land instead of an existing home
If you're going to build from scratch, make it your primary residence instead of a vacation home.
Stick to single-family
There are multiple possibilities when it comes to purchasing a vacation home, and one might suit your purposes better.
Overestimate how often you’ll visit
It's easy to imagine that you'd spend all your long weekends and paid time off at your vacation home, but be realistic.
Assume one location is more or less the same as another
The old adage "location, location, location" applies equally to vacation homes; some vacation locations are more forgiving than others.
Buy your first vacation home overseas
The thought of owning a beach home overseas is enticing, but if this is your first vacation home, it might be a bigger risk than you're imagining.
Think family purchases always work out
When you aren't all on the same page about all the details, problems arise, and family rifts have taken place over much less.
