What to Consider When Buying a Vacation Home

No matter where your family lives, there is no arguing that natural spaces are often more appealing. Fresh air, sprawling lakes, and abundant wildlife offer an escape from everyday distractions, so it’s no wonder that 37% of families say that vacation makes them happy.

So, what if you had your very own natural escape?

If your family has been doing vacation rentals, you may have fallen in love with one specific location. This is a great reason to purchase your own second home. The benefits of owning over renting a vacation home are numerous: For the 37-47% of households that have dogs, you don’t have to worry about a rental not allowing Fido to come along. You can also consider renting it out for profit in the future.

Before you take the plunge into vacation home ownership, it’s important to keep several key factors in mind. The following are just some of the most important points to consider when choosing your family’s home away from home:

Your Family’s Life Stage

The age of your kids is an important factor in choosing your rental home. If your children are small and you expect to enjoy family vacations for years to come, this could broaden your budget and home size preferences. For parents of older children, you might not expect to be bringing the whole crew along as children go off to college. If grandchildren will soon be in the picture, consider how many bedrooms you are looking for.

Local Property Laws And Taxes

When buying property in a different state, it is easy to misinterpret ownership regulations and tax laws. The best way to understand this information is to work with a real estate agent. In fact, industry data shows that 78% of recent home buyers found their own agents to be a very useful source of information.

Potential ROI

Remember that you are not just buying for the short term. Think about how much money you’ll have to put into the property to ensure you’ll earn a lucrative future resale. The key is to focus on maximizing your return on investment (ROI).

The Surrounding Area

It’s important to get familiar with the local community. Get a feel for the local culture and notice whether there are other families in the area. Make sure you buy in a community that matches your family well, since your kids will want to make vacation friends and enjoy local activities.

Property Risk

While you may have found the waterfront property of your dreams, don’t forget that it comes with a certain level of risk. Hurricanes, floods, and other natural disasters could be a factor, so have an emergency preparedness plan and look into insurance options for your vacation home.

Finally, here is one last piece of advice: take your time. Trey Duling writes in Money: “Slow down — and do your research. Move forward only after you have thoroughly run the numbers yourself. An opportunity that turns sour will eat up your money — as well as your precious vacation days.”

While the initial process of purchasing a vacation home takes quite a bit of legwork and investment, it is ultimately worth it. Once you see your kids splashing in the water, hunting for fireflies, and running barefoot through the grass, you’ll surely feel satisfied with your decision. The little moments shared at your second home could become your family’s most cherished memories.

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