Buying a home in your favorite vacation spot can be exciting. Instead of renting a different property each time you visit, you will have a home of your own to stay in year after year.
One of the biggest hurdles that you may face when deciding to purchase a vacation home is determining a budget. The costs associated with a vacation property can differ from those you pay for your primary residence, so keep these tips in mind when creating a budget for your vacation home purchase.
1. Factor in Extra Costs
You will need to factor in all of the extra costs required to take care of a vacation property when you are building a budget for your purchase. In addition to paying the monthly mortgage, insurance, and property taxes for your vacation property, you will need to pay for the upkeep of the property as well.
If you are planning to rent the property during the weeks you aren't using it yourself, you should factor the cost of a property manager into the monthly budget. Other fees you may need to account for include HOA fees, landscaping fees, and routine maintenance fees.
You will need to add these extra costs to the monthly mortgage to determine what purchase price fits best in your budget.
2. Consider Your Tastes
Home prices in popular vacation areas can vary significantly based on proximity to local amenities. You will need to consider your tastes when it comes to vacationing before you establish a budget for your vacation home.
Some people enjoy being removed from local hot spots so that they can enjoy a more authentic cultural experience while on vacation. If this sounds like you, then you will be able to purchase a larger home away from city centers or tourist attractions for a reasonable price.
If you want to be in the thick of things, you will need a budget that allows you to spend a bit more on your vacation home. Your personal tastes will play a role in determining your budget when purchasing a vacation property.
3. Research All Four Seasons
Many people invest in a vacation home with the intention of renting out the property to help cover mortgage costs. If you are planning to use your vacation home as a rental property, you will need to research all four seasons in your favorite vacation spot before setting a price limit for your purchase.
Make sure that you don't buy a vacation home with a mortgage that is so high you can't cover it during the slow season when rental income might drop.
To learn more about vacation homes for sale, contact a real estate agent in your area.