Owning a vacation home is an amazing way to streamline your holidays and avoid the hassle that comes with looking for a vacation rental each time you want to go. It will also be a parenting win for you as you will be making an investment that your children will love. Before you put the money down for one, however, read the five things you need to know before so that you fully understand what you’re getting into.
Will it Fit Your Lifestyle?
The very first thing to figure out about your soon-to-be vacation home is whether it will fit your lifestyle or not. Some things are going to be mandatory after you get your new home, such as getting insurance for it. It’s important to note that the Second Chance Law took effect in September 2018 and it allows low-level, one-time convictions like DWIs to remain sealed from public view. In this case, find out if it will be possible to get good insurance with no issues because it’s important to protect your investment and home insurance is what allows you to be confident about having a safe home.
What Are All the Costs it Will Come With?
Different areas have different charges, fees, and taxes associated with buying and owning a home, and vacation homes will be no different. To be able to come up with a working budget and be sure that you can handle this investment, first find out all the costs attached to getting your home. Research to find out the taxes you will need to pay for as well as any renovation or upgrades that may need to be done. Finally, find out how much it will cost you to go there with your family every vacation, because if it’s extremely far, you may have a hard time getting to and from conveniently.
Can You Rent It Out?
Since it’s a vacation spot, it’s obvious that you won’t spend all your time there. For it to make financial sense, then, you need to know whether you can rent it out when you’re not using it. Find out if there will be additional costs and fees attached to renting it out so you know whether compliance will cost you extra and whether you can get this money back. With over 9.9 million families owning timeshares at the moment, it’s important to know whether your vacation spot will be easily accessible and appealing to people when you’re not using it. If many other people own one around the same area, make sure that you don’t price yourself out of a potential renter’s reach.
Will You Hire a Manager For it?
Since you won’t be living in the home throughout, you will need to know how you will keep it in good shape throughout. The home will need to be kept clean and have any issues that come up dealt with as soon as possible in order to avoid the wear and tear that comes with ignored damage. It will also be important to have a way to get people interested in renting it out, if you choose to do so, easily situated. This will call for getting a manager who will be hands-on at all times and notify you of any issues beyond their control and those that you wouldn’t be aware of if you weren’t on the premises.
How Will You Finance It?
Finally, as mentioned, a vacation rental is a big investment and so it will need to be thought through carefully. Do you have a means of getting financing for it, and are the rates going to be good? Will you manage to pay mortgages on it and also meet your other financial obligations? Answer these questions honestly so that you don’t end up with more than you can handle on your plate. With 54,000 custom home buildings started in the spring of 2021, keep in mind that it’s also an option to build a vacation rental if you have a good location and the funding to do so.
Once you make the considerations above, you will have an easier time figuring out if and how to buy a family vacation home.