Can you imagine having a vacation property that you could escape to when you’ve had a bad week? A place you can jet off to when you find yourself with a 4 day weekend or a place that’s you and your spouse’s little secret. Sounds like a dream, right?
There are so many factors that go into deciding whether or not a vacation home is right for you. From location to finances, this post will help you decide if you want to take the plunge to invest in that home away from home.
Vacation Property Location
The first thing we need to consider is where the vacation home will be located.
“How do I go about doing that?” First, think of a place that you love more than anywhere else on earth. Whether that’s Disney World, Martha’s Vineyard, Santa Cruz or a village hidden in the mountains, make a list of your top 10 favorite places, ranking them from favorite to least favorite.
The next step is to calculate how far those locations are from where you currently live. It’s important to note how long it would take to travel there and the costs of that transportation as well. If it’s only a couple of hours away by car, no big deal, but if it’s somewhere you have to hop on multiple flights to get to then those expenses will start to add up unless you’re always able to find cheap flights.
After taking note of this information, reorder your original list with the place that is cheapest and quickest to get to at the top and VOILA! That should be your ideal location for your home away from home.
Financing a Vacation Property
Now that we have your ideal location, it’s time to work out whether you can truly afford to purchase a vacation home there. More than likely, taking a loan out for the home is in the books. Also remember that renting your vacation property place out when you’re not using it is another great option to generate additional income and help offset the original cost.
Taxes are the biggest factor when looking into a vacation home financially, especially if you’re renting it. Property taxes can add up, especially in areas more susceptible to natural disasters but an important thing to remember is that owning a second property can give you additional tax-deductible advantages, also helping with the investment costs.
Another financing factor to consider in a vacation property is the upkeep and maintenance, especially in places that see the seasons of fall turning into winter. In places like Pennsylvania or the Midwest, when the leaves fall towards the end of the year, you should opt for companies like Gutter Cleaning Philadelphia to remove them. Ignoring maintenance tasks like this could risk damp or structural damage to the property.
Style of the Vacation Property
Once you have your ideal location and finances in position, it’s about time to finally begin choosing that vacation property. This part of the process is all about choosing the style of living you want from your holiday home. Should it be completely different than your current home or are you seeking that comfortability factor out of it?
There are a multitude of home styles to choose from like cabins in the woods or lodges in the mountains. Or maybe you’re wanting to give coastal living a try where you can spend your days on the edge of a lake or ocean.
While it’s less popular compared to the other options, you also could be looking for an apartment in the city to escape your rural home. Space is definitely more limited in this areas but the proximity to the urban setting offers a lot of what people are looking for.
Something to consider with a vacation home in the city is that those are more likely to be rented out through sites such as AirBnb, maximizing your potential to make money on the property when you’re not using it, especially if it has views like this photo below.
When You’ll Use the Vacation Property
It’s no secret that every location experiences some sort of offseason, which is a vital factor to consider when purchasing a vacation home. Deciding when you will use it and whether you’ll lease it out to family members or strangers when you aren’t there is definitely something to think about.
Most people with a vacation home love the convenience of visiting their property whenever they want but leasing out your home can be a fantastic way of funding its purchase and maintenance. Important keys to remember is you’ll need to employ someone from the local area to clean the property and handle any maintenance that needs attention if you’re not there.
Is a Vacation Property Right for You?
Before you decide to purchase a vacation home, you need to consider some vital factors. These include the locations that you most love, how you will source the finance, as well as the style of property that would be best suited to you. Remember to think carefully about whether you will lease out your vacation home while you aren’t there. If you do choose to do this, make sure to get someone that can help you keep it clean and well maintained for your guests.
