What to Consider When Buying a Vacation Home
In honor of summer, we’re offering advice to help you achieve your goals of cool drinks poolside, naps on the beach, jet-skiing on a lake, or even hiking under the stars in the mountains. We’re offering tips in honor of these longings: what to consider when looking into purchasing a vacation home!
Primarily, always put your best foot forward when it comes to location. Aside from location likely being the first thing on your mind, there are numerous reasons as to why location is important. Will that location hold up in the years to come, is renting it out in off seasons an option and lastly: will you still be able to enjoy your home during the busiest tourist seasons of the year? These are all important factors to consider as to how they can impact you economically and also how they can impact the extent to which you are able to enjoy your investment.
Experts advise to set aside 1.5% of your property’s initial price for unexpected expenses such as repairs or updates. This is especially encouraged if you are planning on renting out your home. Additionally, be sure not to assume that you will always be able to rent out your home to tourists when you are not there, as this could impact the economic gain you expect to have year after year. Lastly, rent in the area that you are considering buying. Do this for a minimum of two weeks, as you want to get a feel for what it is like to stay there for extended periods of time. Feeling out a rental home can only be done through experience- so get renting and go enjoy that pool/beach/mountain!
These may seem a bit overwhelming when considering buying a vacation home, but there are significant economic benefits to owning a second home. One of these being that the interest gained on the mortgage of a second home is tax deductible. Not only this, but the income you gain through renting out your property could potentially pay off your monthly payments! Speak to your Premier Mortgage Group advisor today to learn more of the economic benefits.