Buying a Summer Home
Wintering away isnt the only option forhome buyers theres also the possibility of buying a summer home. Maybe youd like an isolated cabin where you can have your run of the woods, or a house nestled in the mountains. No matter the location, there are some fantastic advantages to owning a summer home. There are also some drawbacks. So before jumping into that sale, lets look at both sides of the equation.
Pros:
If youre buying a summer home partially as an investment, youre in luck. Sales of vacation homes have been going up because they target specific lifestyles. Very fewbuyers looking for these properties want to rent them; they want to USE them. Better still, the soft real estate market means you can get your dream house for less, knowing that value is likely to improve as the market recoups.
Another advantage to looking for a summer home is variety. There are a lot of locations and housing options available to you, in fact there might be TOO many. You will need to narrow your choices by weather preferences and overall culture of the community in which you want to live.
The third advantage to buying a summer home is you will always know what kind of lodging awaits you for your vacation. Therell be no surprises like noisytourists in the next room of a hotel, or poorly cleaned accommodations.
Considerations:
While all that sounds good, a key question to ask yourself is this: Is a vacation home right for me? You may not like going to the same place year, after year, after year. Buying a summer home ties you to a location and framework. As a result, you may want to consider renting before you buy. Set up the same rental location for several years and see how you like it. If it works then youre probably ready to start shopping. If it doesnt you know youre in the wrong location or that a summer home isnt quite your gig.
Share the Wealth?
Somebuyers go in on the costs of summer homes together not simply for the financial benefits but also to help maintain the property. Obviously you want to trust your partners and know theyre dependable. However, there is always the chance that something could go awry in the future with a partner (loss of job, for example). Now theres the problem of all that overhead and no financial assistance. This risk might be worth it on a spectacular retreat, but otherwise its often smarter to go small, affordable and solo!
Renting your Vacation Home:
The frugalhome ownermay think heavily about renting their vacation home when theyre away. This certainly offsets mortgage costs, but it also can be a very iffy proposition. The laws about rentals and owner occupancy vary from region to region. Its important to check them and any mortgage stipulations on the home as well. Then of course theres the issue of having completely unknownpeople using your property. Youll want a good rental contract, and may also want to consider finding a rental property manager to make sure your investment is fully protected. Proceed with caution.
Summary:
The timing is great for buying a summer home, but even so take your time. Really think about this decision before jumping into another debt. Remember to research potential locations carefully, get those home inspections, and be certain that your planned vacation home will be the dream spot youve always wanted.