Tips for Buying a Vacation Home
Summer is here and it might be a good time to consider buying a vacation home. Here are some tips to help you decide if this is the right move for you.
Are You Ready For A Second Mortgage?-
If your primary residence is paid for, it’s not such an issue. If that’s not the case, ask yourself if you can afford to pay for two mortgages simultaneously. How will a second mortgage impact the rest of your financial life? Do you have an emergency fund socked away in case of a job loss or long term absence due to illness or injury? Be sure you are prepared.
Do You Have Any Upcoming Major Financial Obligations?-
Do you have a child (or more than one) heading off to college? Are you in desperate need of a new car? Is your primary residence in need of costly repairs or updates? Make sure buying a vacation property isn’t going to interfere with other major life obligations in your immediate future. If that’s the case, you may want to put off the vacation home for a year or two.
Are You Financially Prepared For Upkeep And Costs?-
Your vacation home won’t exist in a protective bubble while you’re at home the rest of the year. You have to think about maintenance and repairs. If your vacation home is on the beach, you will have to contend with regular wear and tear from the elements, as well as possible issues of storms. Do you have to pay homeowners association bills? Have the funds socked away to deal with these issues up front.
Do You Plan On Renting Your Vacation Home?
A good way to offset the costs of owning a vacation home is to rent your property the rest of the year. Just remember, there are costs associated with that process as well. You need to hire a reliable property manager to handle things while you’re away. You most likely don’t have the time to find and vet potential renters or fly to your second property every time the toilet backs up. Your trusted real estate professional can guide you through this process of property management. CBWW has been in the property management business since 1936. If you have questions about property management, give our property management office a call at (865) 584-4700!
Buying a vacation home can be a dream come true, just make sure you are prepared for what comes with it.