Do you like to escape to the same locale frequently? Then maybe you’ve been toying with the idea of buying a vacation home to serve as your home away from home. Here are a few things to consider before putting in an offer on a second property — whether a lake cabin, a beach condo or an urban oasis.
What is the upkeep?
A big plus of owning a vacation home is convenience. You can stock it with the things you need and want on your stays. But that convenience is negated if you have to spend your much-needed downtime tackling maintenance or wrangling contractors. Avoid a big yard, unless you can hire a local caretaker. Historic properties have charm, but they may not be equipped to wire with smart technology that can help you manage temperature and security features while you’re away. Whatever type of home you’re considering, review all the logistics of taking care of it and keeping it vacation ready.
What are the extra costs in buying a vacation home?
Any home purchase will cost more than its sticker price. Investigate the rate of utilities, property taxes, multiple property insurance and so on. Many vacation abodes, especially if they’re part of a more substantial property or community, will have HOA fees as well.
Is my vacation rental worth the investment?
Buying a property could save you money in the long run since you’ll no longer need to rent a place when you vacation. Plus, a second home can be a great investment, especially if values are on the rise in the place you love to visit. Research the area’s real estate market and review the history and projections. Consider where the cash will come from. If you have to move money from elsewhere in your portfolio, weigh the pros and cons of doing so.
Is the vacation home where you want to be?
Will buying a place in one destination keep you from visiting others? If your visits are sporadic at best or you think that buying a home in one fun spot will keep you from seeing new horizons, then it might be better to hold off on a permanent pad and swing for an RV to keep traveling. But if you hit the slopes on your favorite mountain all winter without fail, then buying a ski cabin likely makes sense. Don’t forget to think long-term, too.
Buying a home away from home may be just what you’ve always wanted. Be sure your second property has the proper coverage. Your local Farm Bureau agent can help ensure you have the coverage you need.