Home Mortgage Blog
Tips for Buying A Vacation Home
Vacation homes can be a great way to invest in real estate. Whether it’s in the mountains, on a lake, or by the beach, a vacation home is a wonderful place where your friends and family can make memories for generations to come. With interest rates still historically low, now could be a great time to buy. If you are in the market for a place to call home, away from home, here are several things to consider as you start your search.
- Choose An Area You Love
This may seem all too simple, but if you are looking to buy a vacation home, make sure you choose an area that you are certain you love spending time in. In most cases, it is best to visit several times before you confirm it is a place you would like to invest. Consider factors like logistics and convenience, how easy or difficult is it to get to from your current home? Is it close to the places you like to spend time at when you are in the region?
- Estimate Maintenance and Carrying Costs
Look into what you will be spending on property taxes, insurance, and any caretaking that you will need to have done while you are away. Factoring these costs into your budget will help you make a more informed decision when comparing properties.
- Talk to the Locals and Do Your Research
The more you can learn about the area, the better. Of course, you will want to work with a trusted REALTOR® who knows the area, but talking to the locals is a great way to get a feel for the location as well. Ask about what the region is like during the off-season. Learn more about the weather year round, local businesses, and if the area is growing. You might learn something that will help shape your purchase.
- Decide How You Will Use Your Vacation Home
Decide in advance how you will be using your vacation home. Do you plan to live there seasonally or for weekend getaways? Do you intend to use the property to generate rental income or will it be primarily for family use?
If you are financing the home, you could purchase it as either a second home or an investment property. The difference between the two is whether or not you are able to use the property to generate rental income. Each option has its own pro and cons.
Are you ready to get started? To learn more, reach out to a Marketplace Home Mortgage Loan Officer. They can help you prepare for your purchase and determine the loan program that is best for you.