Let’s face it… the market is starting to come back around and in a way right now it is still a seller’s market. The number of homes that are demanded is less than the inventory. While many of us are looking for a primary residence (somewhere to lay our hats), there are a lot of people out there looking for a 2nd home/vacation home. Vacationcluster.com came up with some good questions you might want to ponder on, BEFORE investing money in a vacation home.
1. How many times will you frequent the place?
Are you going to go there enough to justify the purchase? IF not, maybe reconsider somewhere you might be able to visit more frequently.
2. Keep an eye on your budget
Who want so be married to a house payment, let alone a home that is your secondary residence. That might take the joy out of it if you feel “strapped” to the payment.
3. Spend a little time there
Make sure this it is not an emotional purchase, and go there different times of the year and explore the area and what it has to offer you.
4. Who will take care of it once you’re gone?
Let’s face it’s a vacation home so you will not be there a lot. Who will watch over it while you are not there? Is it close enough to your home that you can unexpectedly stop by anytime?
5. Are the day-to-day risks in check?
What goes on around the house when you are not there? Is there a lot of foot traffic.. is there a loud noise problem.. is there an insect problem?
6. Thought about renting it out?
VRBO is the way to go on a lot of homes people are buying up. That is certainly something to consider when buying a second home and for resale value.
7. Collaborate with an agent
Real Estate agents are here to help bounce off ideas and help with keeping up with a plan that you have on the home you want to buy.
8. What is your ultimate goal?
If it’s a vacation home or a home you will live in, buying a home is truly something you should consider all options on it. A lot of us want to buy a house that is “pretty” or is near someone we are around a lot. However, in reality you need to look at the bigger picture and not make an emotional purchase. This type of purchase is one that some regret after the fact.