As you close the door on summer, are visions of your summer vacation flashing through your mind? If you spent some time this summer at the beach, in the mountains or near friends or family in an area you love, you might be thinking of purchasing a second home to enjoy that location more often. Now is a great time to consider such a move because many homeowners often put their vacation homes on the market after the season is over.
But first, be sure to consider a few important issues. Consult with your financial pro. You might believe you can afford an additional mortgage payment, utilities, taxes and other expenses, but your financial situation might say otherwise. Talk with your financial advisor to discuss the best way to pay for the vacation home – and its upkeep.
Determine home use. Will it be a vacation home for personal use, a rental property (with some personal use), an investment (no personal use), an eventual retirement home or another use? Determine usage to understand tax implications and rental income that could offset expenses.
Consider desirability. Is the home easily reachable by your family? If being used as a rental is the area a continual – or just seasonal – draw for visitors? Examine the economic viability of the area, surrounding homes and amenities, and your home usage plans.
Who will own the house? If you can’t afford it on your own, you might consider siblings, friends, parents, or others to co-own it with you. Be sure to meet with a legal professional to outline how expenses and improvements will be shared. You’ll also have to consider creating a schedule of use time for all parties.
Don’t go it alone. Even if the vacation home you’re thinking about is thousands of miles away, give us a call. We can connect you with a real estate professional who will help you find a great vacation home anywhere in the world!
