If you’re planning on buying a vacation home, you need to do more than simply head out and start looking at houses. While buying a vacation home is similar to buying your primary residence, there are a few questions you need to ask that are different. If you’re checking out homes for sale in Charles Cove and aren’t asking these questions, you may be making a mistake. Here are some of the important things to ask when you’re buying a vacation home.
What Other Costs Are Involved in a Vacation Home?
You also need to take into account other costs. You’ll be paying more than just a mortgage, homeowner’s insurance, and property taxes. You also need to take into account yard work, repairs, and other maintenance costs. Most importantly, vacation homes typically come with home owner association dues. These dues can affect your purchase power.
You will need to have someone regularly check the home when you’re not using it, especially if you’re also not renting it out. Then there’s the cost of furnishing the home. You may not have any furniture you could move from your primary home to this second house. Finally, there’s the cost of traveling to the vacation home. Be sure you understand what the cost of living in the area is. You may find that you pay more for just about everything.
Are You Going to Rent the Property?
You may think you can rent out the property when you’re not using it to make a good amount of extra income, but you need to sit down with a tax expert first. Renting a home does change how you can deduct things such as mortgage interest. There are also changes if you own more than one property and plan on buying a vacation home. Be certain to fully investigate all of these factors and understand how they will impact you and your finances.
Will I Get a Good Return on Your Investment?
If you will only be using your vacation home for a few weeks out of the year, you’re paying a lot for very little return. On the other hand, if you use it several times a year or plan on spending most of the summer there, it’s a much better investment. One easy way of seeing if you’re getting good use of the property is to add up all of your expenses for a year. Now add up the amount you spend each time you visit the area. Next, divide your vacation home’s annual expenses by how many trips you make here each year. This will tell you what each of those trips costs. If it’s lower than what you’d normally spend, you’re truly saving.
Will I Move There, Eventually?
Of course, you may have other goals with your property. If you are renting it out, you have to take that into consideration. If you plan on moving into your vacation home after you retire, that’s another factor to consider when calculating your return on investment.
The most successful Davenport vacation home owners are the ones that love the area, travel here often, plan for a future in Davenport and rent the property out (or have the finances to leave it vacant with a periodic house check).
Are You Ready to Find a Great Vacation Home?
If you want to purchase a vacation home in Kissimmee or nearby area, Florida Realty Marketplace is here to help. Our team has years of experience in the area, and we can help you find the perfect vacation property. Contact us today to begin the process.