The newly frigid air warns of colder weather to come, and we start to look forward to our favorite part of winter: vacation! If you're one who vacations frequently throughout the year, or who stays away for extended periods of time, buying a vacation home may be a desirable option for you.
The first thing to consider is your finances, do you have a good amount of savings tucked away? Can you afford the mortgage, utilities, and hidden costs on a second property? You may also consider how much use you expect to get out of a vacation home. If Vermont winters are becoming increasingly unbearable, or you find yourself visiting family on a regular basis in another state, this second home has the potential to switch to primary status at some point in the future, making it an even more sound investment.
A vacation home also offers some hidden income potential as a rental property. A condo will better lend itself to this function as association fees cover the upkeep and maintenance you will not be around to oversee. Better not to depend on rental income to carry your mortgage for the property, but it is an added benefit to a home that for you will only be used seasonally.
Follow the Market
Most importantly, now is the ideal time to buy your dream vacation home. The unfortunate truth is that the stock market - and the real estate market with it - is at a spectacular low making it the prime time to catch deals and steals on a new property. If you're not looking for a quick turn around on the property, sitting on it until the market improves (and yes, it will improve!) may pay off handsomely should you decide to sell it for a profit later on.
Stressful economic times have us all looking for a peaceful place to escape to, and a vacation home may just be the solution to your winter woes. Investing in a seasonal property can bring you added income from renting now as well as a tidy profit down the road. Or it just may become your primary residence.
And wouldn't you just love to have a place where all your family and friends can convene, enjoying warmer weather and time together!