Is Your Vacation Home A Worthwhile Investment?
The holiday season is finally here, and you know what that means – time to start planning your winter vacation. Plenty of families take advantage of the holiday season to get away from the chilly weather at home – in fact, a whopping 96% of American workers say vacation time is important to them. Some take it one step further and purchase vacation homes that they and their families can live in during the holidays to get away for a bit. But is a vacation home really worth it? Here are a few ways to tell if a vacation home is a worthwhile investment for you and your family. (Image Credit: Ralph Caden/ Pixabay)
How long are you spending there?
Obviously, the first and most important factor to consider when purchasing your vacation home is how much time you’ll be spending in the home throughout the year. Will you and your family only be visiting the area for the holidays, or are you spending almost half the year there? About 42% of vacation home buyers plan on using their property for vacations or as a family retreat. Try to estimate how much time out of the year you’ll be spending in your vacation home – if it’s a relatively short amount of time, you could be better off renting.
What condition is the home in?
Not all properties are in the best condition, and the state of the home could greatly impact how much it’s worth. Purchasing a brand new home to use while you’re on vacation has greater costs upfront, but purchasing an older home could come with surprise expenses and repairs. Also keep in mind that unless you rent out the home for part of the year, the property will be vacant for a significant amount of time. This could mean increased expenses after your initial purchase due to maintenance costs.
How is the real estate market there?
Knowing how much a property is actually worth can be incredibly difficult – every real estate market is going to be at least a little bit different. Location and home quality can be helpful predictors, of course, but there’s still no guarantee on what a property is worth. Try to find a reliable and trustworthy real estate agent who knows the area you’re looking to buy in well – 78% of recent buyers found their real estate agent to be a very useful information source.
Does it make you and your family happy?
Finally, when looking into buying a vacation home, talk with your family about the options. Vacations matter a lot to a majority of families, and they’ll likely have strong opinions about where they stay during their vacation time. Roughly 37% of families say that vacations make them happy, making a vacation together the activity that makes families most happy. Check with your family to ensure that investing in a vacation home isn’t just worth it financially, but also emotionally. A major real estate purchase, like a vacation home, should also have value for your lifestyle as well.
Vacation homes are a major investment, and one that you want to make sure pays off over time. Follow these tips to ensure that your vacation home purchase is worthwhile both as an investment and for your family’s happiness overall. That way, you’ll have a gorgeous vacation home to spend your future holidays in.