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What to know before buying that vacation home

On Behalf of | Apr 29, 2022 | Real Estate

While there are plenty of benefits to owning a vacation home in Rhode Island, it also takes a considerable amount of time and energy. This is such a major life decision with so much at stake that you may be eager to use your vacation home by the time you’ve closed the deal.

Vacation homes are highly popular

More people are looking for vacation homes in today’s market according to the National Association of Realtors. In the first quarter of 2021, the sales of vacation homes were on the rise by 57.2% compared to 2020.

Many people buy a vacation home as an opportunity to enjoy life and relax. This may turn into a special place to reconnect with family and loved ones or a private getaway to prevent mental burnout.

When you own a vacation house, your travels aren’t limited to expensive hotels and retreats. This allows you to spend more time away from home and less money while you’re there.

Remember to think of owning a vacation home as the investment that it is. It’s an opportunity to earn money on the side by renting out the property, and generating a passive income to fund the next trip.

Be prepared for the expenses

Make sure you are prepared for an expensive investment. The cost of maintaining a second home includes upkeep, utilities, mortgage payments, insurance, and property taxes.

Consider how you’ll feel about your new vacation home once you’ve had it for a number of years. Will the location still have the same draw, or will it have lost its appeal? You might feel stuck with this property if the novelty wears off.

To make sure you consider all the costs before buying a vacation home, it’s helpful to think about the expenses for an entire year at the new house. This makes it easier to expect the unexpected.