Purchasing A Summer Vacation Home? What You Need To Consider
Looking into a second home to purchase for summer vacations? This can be an excellent purchase for some families, since it provides a fun place to go, as well as an additional source of income. However, before you decide to make this purchase, you'll need to consider the following:
Summer Homes Don't Need To Be Big
A common mistake of purchasing a summer home is thinking that the house needs to be just as big as your current home. A second home doesn't have to be that big; you only spend a short amount of time at the home every single year, so it can be a downsized version that meets your needs.
Making conservative choices with a home's size can help make a summer vacation home more affordable. If you find your family not making the same amount of income, the financial burden will not be as hard on you.
Summer Homes Can Help Pay For Themselves With Rental Income
There is no reason that your summer vacation home should be vacant most of the year. That is why many people rent out their summer home during times when they do not plan on using it. There are several vacation home rental websites on which you can list your home, and this will help others find your home for their own vacations.
Consider offsetting your own vacations so that you can take advantage of higher rental prices around holidays. Memorial Day, Labor Day, 4th of July, and Christmas can all be prime times when vacation home rental is at the highest. If you can take vacations during the other weekends in between, you can make some big bucks off of the rental income.
If you're planning on renting the home, ask your real estate agent about potential vacation hot spots that are likely to see more rental activity.
Summer Homes Need A Budget For Maintenance And Additional Expenses
Don't forget that a summer vacation home needs maintenance just like your own home. You should be saving for these expenses throughout the year by putting aside the funds to pay for them. You do not want to be caught off guard by needing to replace a roof or a failing hot water heater, or replacing a broken kitchen appliance. Keeping the summer home in good condition is important, since you will someday look to sell the home and make some money off of it.