Buying A Vacation Home – So, maybe you’ve just started thinking about buying a winter home, or maybe you’re fully invested and have been looking for months! A winter home is a great investment, and a place to escape to during the freezing months of the year!
Is Buying A Vacation Home A Good Investment?
Before you jump into buying a winter home, there are a few things you should consider in order to determine what the best decision is for you and your family.
Go through each of the three questions below to ask yourself prior to officially investing in a winter home.
Is the warm area you’re thinking about moving to one that you know well enough?
Vacationing in Miami is a lot different than actually living there! Do some research about the area where you’re considering purchasing, and if you have the time and budget, consider visiting the area to get an idea of what actually living there would be like.
Are there amenities near the home you’re thinking of purchasing? What is the weather like there on most days in the winter? Is the neighborhood populous or quit?
If you’re not sure, take the time to check into it!
Is doubling living expenses something that you’re prepared to do?
While two mortgage payments is something you may be able to afford, it’s important to remember in the long-term you’ll have to concentrate on two sets of homeowners insurance policies, and houses to furnish, update, maintain, and pay utilities for.
Create an estimate budget spreadsheet for two homes and see how it would fit within your budget and your average monthly spending. Also take into consideration the cost of living for your winter home location. Is it more expensive or cheaper than your permanent home?
Best Winter Home Locations
Have you thought about the taxes?
While paying property taxes on your existing home is something you’re already used to, paying property taxes on a winter home is something different entirely. This makes it a good idea to speak to a tax preparer because these types of taxes will be a little more complicated than what you’re typically used to.
Buying A Vacation Home – This article is meant as a base point to jump off into the world of owning a winter home. This is an important decision and one that requires a lot of forethought and examination of your current living style and dreams for the future. No matter what, it’s always a good idea to conduct your own research on a property and city you have your eye on. Happy hunting!