What is it about vacation homes that make them so appealing? It might be the romantic notions we have of spending time in nature with loved ones or escaping to a tranquil space far from our 9-5 drudgery. Perhaps it's the allure of having a place that we can call "ours" for an extended period-of-time, or it could be that we like the idea of being able to extend an invitation to family and friends.
However, with vacation homes come unique challenges and responsibilities. Vacation homes require a great deal more than simply showing up and enjoying the property. Vacation homes are investment properties, and as such need attention, work, and planning. Before you take the plunge, it's important to have the facts and figures which might make the difference between a fun-filled vacation and a nightmare.
To help you get started on your planning, here are five things that you really need to know before buying a vacation home.
Buy it for the right reasons.
Be 100 percent honest with yourself before buying a vacation home: Do you really want a place to crash on the weekends? How often will you actually use it? If it's for use as a weekend getaway, then by all means, start researching your favorite destinations and start looking at homes in those areas that meet your needs and budget.
Assess the financial commitment to owning a vacation home.
Will you make money owning it? Can you afford the taxes, insurance, and upkeep that come with ownership? Will it take time away from your family to maintain the home? Is it right for you and your family's lifestyle? If so, how much can you truly afford? It's important to do an honest assessment, looking at your budget, and making sure you can meet your obligations if something goes wrong. Don't count on making up the difference by renting your vacation home without first doing a market assessment.
Inspect the structure, wiring, and plumbing as necessary.
Make sure that all systems are working properly before you put unknowns in your vacation home. Make repairs on your own dime unless it's clearly a safety issue that requires a contractor's attention immediately. When you buy a vacation home, you're making an investment in a place that will shelter your loved ones as well as yourself for an extended period of time. The last thing you want is to move out and have to deal with unexpected problems later on down the road.
Consider hiring a property manager to maintain your vacation home for you.
If you can't devote enough time to maintaining it yourself, a property manager can take care of the dirty work. This way, you only have to make an occasional visit as necessary. Professionals tend to do a better job maintaining their properties and will often help with repairs and maintenance recommendations during your absence.
If you're going to rent out the property, be sure to have your own licensing and identification requirements in place for both yourself as well as the renter.
In addition to checking whether or not you can afford the home purchase, make sure that you're comfortable with the level of responsibility involved--and that you know how to keep yourself protected from exposure for unknown liabilities or suitability issues.
Finding a vacation home that meets your needs isn't easy, but with some careful planning, you can find a property that offers the right balance of luxury, space, and amenities. The most important thing to remember is that you want to enjoy your vacation home and not feel overwhelmed with the responsibility of upkeep, maintenance, and repair.
