When considering buying a vacation home, the first question you should ask yourself is, am I ready to be married to this location? After all, you will be deciding on a regular vacation destination, and if your finances are limited, it may become your “only” vacation destination.
However, being prepared and taking the appropriate measures may help you pursue your dream and make your experience much easier. Here are some worthy considerations:
Location, location, location, this is the first rule of thumb whether you are purchasing a primary residence or a vacation home. Buying in a highly desirable area that includes views, upgraded features, and other amenities may help keep the value of your home steady.
Determine your price range and stay within your budget. You want the benefit of a vacation home to be pleasurable; you do not want it to become a financial headache. So if your ideal location is out of your price range, consider choosing one that may entail driving a short distance to get to your chosen destination such as the beach or mountain slope.
Logistics – according to the National Association of Realtors (NAR), more than 80 percent of vacation home buyers choose locations within driving distance of where they live. This is important if you plan to visit the property regularly. It can also cut down on the cost of hiring a manager or caretaker.
Include all cost – such as down payment, closing cost, and furnishings, repairs, upkeep, and taxes. If rental income is a goal – keep in mind rental income is unpredictable and should not be factored into the affordability owning this property. You must have a realistic and clear analysis of market trends in the area. You must also, include all cost such as cleaning, management, association fees, routine repairs and unexpected costs. There will also be real-estate taxes, insurance, utilities and may state sales tax, depending on your state of purchase.
When you start searching for your dream vacation home, remember to do your research and find a home that suits your needs and provides you and your family with a home that will be filled with warm memories without financial worries.
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