Should you buy or rent your vacation home.
Does it make sense to buy or rent your vacation home? The Lawhead Team has some tips for buying vs. renting your vacation home.
Before you decide to buy or simply rent your vacation home, you should ask yourself some questions.
- How many days out of the year will you be visiting your vacation home?
- Will family and friends take advantage of your vacation home when you aren’t’ using it?
- How long do you see yourself owning it? Will you be traveling to this location on a regular basis?
- Will the property be properly maintained while you are not there?
- Will you rent it out while you are not there? Keep in mind, the peak season will usually be when you want to stay there and when people will want to rent it out.
If you expect to be in your second home for a minimum of four months per year, owning your vacation home may be the right way to go. When you own your home you can come and go as you please with no limitations. The appreciation of real estate can sometimes be a benefit of owning your vacation home as well.
On the downside, you are responsible for any costs of your vacation home ie: real estate taxes, insurance, utilities, maintenance and upkeep. If you are in a condo association you run the risk of rising condo fees. You are also responsible for the care and maintenance of the property from long distance.