Buying a Vacation Getaway
With the hustle and bustle of everyday life, many people fantasize about running off to a personal retreat, and increasing numbers of homeowners are living out that fantasy by purchasing a second home.
Choosing a location
Do you want to be in the middle of a vacation hot-spot, or enjoy the peace and quiet of a secluded location? Whichever environment you prefer, here are some things you should consider:
- Popularity. A house in a hot vacation market will usually cost more than a place off the beaten path. At the same time, continued popularity may help you profit from appreciation.
- Proximity to your home. If you plan to visit regularly, look for a place that's easy to get to.
- Rental possibilities. If you're hoping to offset some costs by renting the home for part of the year, find out about seasonal demand for rentals in the area.
Maintaining your getaway
Regular upkeep is more difficult with a vacation home than with your primary residence, but no less important. The value of the home, both as an investment and as a place you enjoy visiting, depends on good maintenance.
If you buy a place that's not far from your home, you may want to make weekly visits to mow the lawn, water the garden, or clean the gutters. If doing it yourself is impractical, consider hiring a vacation property management company to provide maintenance services during the times when you're not using the home.
Financing your purchase
The equity you've built up in your primary residence can be a good source of funds to buy a vacation home. With home values in many markets much higher now than they were a few years ago, many owners have experienced rapid equity growth ? leveraging that equity to invest in a second home may be a smart financing strategy.
