After almost two years in a pandemic, people are itching to go on vacation like never before. And with interest rates at an all-time low, it might be worth considering purchasing a vacation home of your very own to get away from it all.
But how do you find a vacation home that not only is in the perfect location but also has a reasonable price attached? After all, if you already have a primary residence and you’re adding on a second property, you have to make sure that you can qualify with the bank and afford the total cost over time.
Beyond affordability, which you should work out with your accountant or the bank you plan to use, here are some steps you could take to find the best home away from home for you and your family.
Consider the Climate
If you want to add a vacation home to your life, you probably don’t want one in the same climate you live year-round. For instance, if you live in the southern part of the U.S. and deal with extreme heat and humidity, maybe it would be a good idea to buy a vacation home in a colder climate where you can enjoy winter sports.
On the other hand, if your home is around the winter wonderland of upstate New York and you want a break from the cold, perhaps looking for houses for sale in Southern California would be a good choice.
When you buy a vacation home, chances are you want to keep it for the long-term, so it might be worth factoring in climate predictions when deciding on a location. Of course, predictions can always change, but if you have your heart set on a coastal region that may be underwater in 15 to 20 years, that’s something you want to account for.
Life Goals
In addition to climate, think about the amenities you want around your vacation home. Do you live in the city and want a taste of country life? Is your home near the beach and you want to be closer to the mountains? Think about why you want to add a vacation home into your life and look for areas to meet your life goals.
Not only that, but consider how much time you’ll spend in your second home. Obviously, if you have a primary residence, you won’t stay in your vacation home full time, so you have to figure out when you’ll stay, how often, and what you’ll do with the property in the times you’re not there. It might be a good idea to rent the home in your absence, and for that, you want to hire a professional property manager to protect your interest.
Real Costs
When considering the affordability of adding a second home to your budget, be sure to consider all costs. There are different lending requirements when you apply for a loan for a vacation home or investment property. Plus, you want to be sure you have enough room in your budget for maintenance costs for both your homes and a property manager if you choose to rent one of them out.
Look back at the amount of money you spend on your house each year and double that number. Adding up all your expenses is the only way to tell if you have the capacity to sustain multiple mortgages on your income.
After all, you don’t want to own two homes if most of your money only goes to those properties without any wiggle room to enjoy your life.
Contact an Agent
Once you consider all factors, it’s time to contact an agent knowledgeable in the area in which you want to spend your vacation time. Let them know your goals with the property, and they can direct you to places that will fit the bill while staying within an affordable range.
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