Most Americans seem to hold the incorrect assumption that a vacation home is strictly for the richest and most elite among us. However, what if we told you that buying and owning a vacation home is attainable for those of us with average incomes? What if we also told you that it could even be financially beneficial?
There are many benefits of owning a vacation home. The following highlights the largest benefits:
It’s a Home Away From Home
As families grow and age, it’s only natural that the individual members spread out. Under ordinary circumstances, it may mean the end of large family celebrations such as Thanksgiving or Christmas; however a vacation home that’s equal distance from your relatives may be able to sustain cherished family traditions.
It Makes Retirement Easy
Waterfront properties or properties in warm, sunny places make for an attractive retirement destination. If you think far enough ahead and purchase a vacation home now, you can eliminate the issue of your retirement location in the future.
It Can Be Financially Lucrative
Renting out a vacation home during the off seasons can net you some serious cash if you maintain it long enough. The best part about this is that you can pass this property on to your family effortlessly in the event that you pass away or don’t want the property anymore. Also, in general, the value of your home will appreciate if you buy it in a touristy area like the West Coast.
However, in spite of these glowing benefits there are still a few problems that are unavoidable if you buy a vacation home, including:
It Requires Upkeep
Just because you’re not there doesn’t mean that the home does not need maintenance. Things will break and deteriorate whether you’re there or not. If you obtain tenants you’ll have to manage any issues for them as well. This can be especially annoying if you don’t live anywhere nearby, which most people don’t.
Financing Can Be More Difficult
The rules for financing a vacation home can be stricter than when you bought your first home. Your down payment may be larger, your credit score must be quite good, and lenders may be less willing to provide lending than they would with a primary residence, and giving it the right maintenance, so is important to know how much does a water heater cost to replace as this is essential for cold weathers.
Of course, buying a vacation home should be reserved for those of us that have a bit of disposable income and a house that’s already mostly paid off. The perfect age for buying a vacation home is between 40 and 50 years old; however it’s always an idea worth considering if you have the disposable income!