Whenever summer approaches, you can’t help but think how great it would be if you had a second property – a vacation home where you can spend quality time with your family or your own private abode where you can just relax and not think of anything that might be stressing you out.
Let’s say you are now financially capable of actually getting one. The idea is so exciting that you just might jump at the first home with a really nice view! You have to hold your horses though. There are some things that you need to consider before making your purchase.
Is it in a really nice location?
When you are too tired from working all the time and are badly in need of some R and R, you might think that anywhere else is better than where you are right now. While that has some truth in it, you have to be realistic. Consider your real preferences. Do you want a place that you can reach in an hour or is that too close to your primary home? Do you want one near the mountains or close to a body of water? If possible, list down the things that make up the perfect location for your dream vacation home, then compare it with the ones on the listings.
Is it really within your budget?
We understand how much you want or perhaps even need that property. But remember that you want one because you want an escape from the everyday burns of reality – bills to pay, kids’ expenses, too much work. Make sure that this second home will not add to the list of your worries, especially financially. Do not buy one when you have the littlest worry that you might have to get an additional job to pay for it.
Do you understand the tax implications?
Second homes are more complicated than your primary home when it comes to taxes. If you are going to rent out your property for example, you will need to pay for income taxes for that. Taxes on second homes are also higher than that for primary residences.
How Often Do You Think You Will Use It?
If you are planning to use it, say, once every month or so, then buying a property might be a smart idea. However, if you think, in all honesty that you’ll probably have time for it just once every year, then that’s a different one. You will probably do better finding a nice family with a home that is open for rental every summer or so.
Buying a second home is not something that you should do in haste. Consider all there is to be considered before deciding on a purchase. If you really think you are ready for it, then find a really good agent to help you out with the whole process. You can call us anytime for any information you might want to know about vacation homes!