Buying a vacation home can be a great investment. However, it can also be a complete drain on your time, money, and resources, so before you invest in a vacation home, it’s important to make sure it’s the right move for you.
And the best way to do that? Asking yourself some key questions.
A recent article from realtor.com outlined questions to ask yourself before you buy a vacation home, including:
- Why do you want to buy a vacation home? People buy vacation homes for a variety of reasons. For example, you might have a vacation destination that you love and want to spend more time in, or you might be buying a vacation rental property as a source of additional income. Getting clear on why you’re buying a vacation home will ultimately help you determine whether buying that home is the right investment at the right time.
- Do you have time to manage a vacation home? If you’re planning on renting out your property, you’re going to have to spend time managing it, which can be a lot of work. For example, you need to market the property, manage the property listing on different vacation sites, keep up maintenance, to name just a few of the ongoing tasks you’ll need to stay on top of. Even if you hire a management company, you’ll need time to manage them. Before you buy a vacation home, it’s important to recognize the time commitment required, and make sure you have that time to commit.
- Do you want short-term renters or long-term renters? When you buy a vacation home, you can rent it out on a short-term basis — for example, on Airbnb or VRBO — or you can find long-term renters that want to stay for the entire season or longer. Both types of renters have advantages and disadvantages, but it’s important to know which type of renter you want to work with before you buy your home.