Every time we go on vacation, Eric and I dream of purchasing a vacation home. Perhaps it’s the feeling of being on vacation that makes you feel invincible enough to think that “yes, perhaps we really could afford a vacation home!”
Of course, once we come home and get back to reality, then we start to really think about the finances and what it would mean for us to buy a vacation a home.
Here are some things to consider when buying a vacation home.
Rental income
It doesn’t make sense to purchase a vacation home if it’s going to remain vacant throughout the year and you’ll only live it in a couple of weeks. Perhaps you may have that kind of disposable income but for most families, that’s just not a possibility.
Your vacation home really needs to be able to bring in a rental income when you’re not living in it. For this reason, location is important when selecting your vacation home. It’s important to look at the surrounding areas and see what kind of rental income they bring in. For example, a home in the heart of Perth may bring in more income than a home deep in the surburbs. For this reason, display homes in Perth by Lend Lease are good options for rental income.
Investment
You have to also think of what kind of investment your vacation home will be. For most people, real estate is a good solid investment that tends to increase in value over time. However, it would be wise to consult with a financial advisor to ensure you are making the right investment. You can use your vacation home to help supplement your retirement income.
Maintenance
A vacation home can be a big time commitment. It is important to consider how you will manage the vacation home especially if you are far away from it. Who will do the repairs? Who will manage renting out the property? Who will take care of the everyday upkeep, such as lawn care, pool care (if applicable), and cleaning in between guests?
Do you have the time and commitment for a vacation home?
While having a vacation home may sound glamorous, it is always important to think of all possibilities when considering making such a big financial investment.
1 comment
This is definitely something to think about especially when seriously considering a purchase as big as this one! A financial investment is just that and there should be a lot of conversation and debate before stepping foot into something that could potentially be binding physically, mentally, an even monetary! Thanks so much for sharing!