Retirement

Buying a Vacation Home? 5 Questions to Consider First

1. How Will I Use the Home? Think about how often the home will be used - and by who. Will you be renting it out? Can family come and stay when you’re not there? Or will it only be occupied a few weeks a year? Did You Know 600,000 Americans use online marketplaces to rent out their property to vacationers. Source 1.

2. Am I Rushing This Decision? When are you making the decision to buy a second home? Is it right after a relaxing vacation at a new location? Or have you been considering this for awhile? A second home is a large expense, you’ll want to avoid being impulsive when making your decision. Tip: Travel to your desired location during each season to get a better feel for what it’s like all year round.

3. Have I Calculated the Costs? Aside from the cost of the house, you’ll need to prepare to pay the ongoing costs of owning a second home. These include: Insurance, property taxes, maintenance, property manager (if renting), and HOA or Amenity Fees (if any).

4. Are There Rules About Renting? If you plan on renting out your vacation home, check local laws and guidelines. Some places cap the number of days a home can be rented out or provide further restrictions on renting to vacationers.

5. What Will I Do in an Emergency? In some instances, an emergency might be a broken water heater or an electrical problem. In other instances, it may be more severe. What's your plan? Would your home be within driving distance, or will you hire someone to check on it periodically throughout the year? Did you know on average, the US is hit by 6 hurricanes a year. Source 2. Sources: iPropertyManagement.com, October 19, 2021, Insurance Information Institute, October 19, 2021.

Share |

Have A Question About This Topic?

Related Content

Moneywoman: Unleash Your Inner Financial Superhero

The first National Women’s Equality Day was in 1971. Women couldn’t get credit cards in their own name back then. And if a woman became pregnant, she could be legally fired. Thankfully, a lot has changed, but some things haven’t. Women still do not receive equal pay for equal work. The gap is roughly 20%1, and women continue to live longer than men, now by an average of seven years.

Fixed or Variable Mortgage, Which Should You Pick?

When selecting a mortgage, one of the most critical choices is between a fixed or variable interest-rate mortgage.

A Fruitful Retirement: Social Security Benefit

Taking your Social Security benefits at the right time may help maximize your benefit.