If you've been considering buying a vacation home for your personal vacations or for rental purposes, then you'll need to do some homework before you get serious about buying.
Homeownership is a big deal, and buying another home can either be a path toward long-term income or a mistake that could hurt you financially.
Here are some questions you should ask (and answer) before you buy
1. Why do you want a vacation home?
- I want a rental property for short-term tenants (Airbnb)
- I’ve always dreamed of owning a home in ________.
- I vacation here all the time and want a place to stay.
- I want to retire here; buying a home seems like a good first step.
2. What can you afford?
- Second homes usually require at least 20% down
- Mortgage rates are usually higher
- Taxes and insurance
- Maintenance, utilities & upkeep
3. Where will you buy?
- I’ve always known - its my favorite spot
- I’m really not sure
- Spend a week or two in different areas
- Make a list of pros and cons; compare
- Talk to locals and find out what the area is like
- Ask other vacation homeowners what it’s like
4. Is this the right one?
- Is the home conveniently located?
- How far to big attractions and public transportation?
- What are crime rates like?
- How does it stack up against other homes in the area?
- Will you have to make changes or upgrades?
- Will it be rentable?
5. How much time will you spend there?
- Consider tax laws
- Factor in travel expenses
6. What's your exit strategy?
- I want to retire in the home
- I need to figure that out
- After its value has increased by $_______
- After I’ve owned it ___ years
- After I’ve paid off ____% of the mortgage
Ready to go? Contact me today!
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