If you’re considering purchasing a vacation home, you’re not alone. The number of recreational second homes has risen roughly 25% since 1989, to 5.1 million, according to the National Association of Realtors. With warm-weather months around the corner, you might be thinking more about a summer home specifically. If you’re considering a vacation home, here are a few tips to ensure everything goes smoothly.
Benefits of a Summer Home
Why do people get a second home? For one, it’s a revenue opportunity when you’re not using it. When you are using it, you save money on hotels and other accommodations. Another benefit is that you get to escape cold weather, assuming you live in a colder environment than your second home. There are also tax breaks and second homes make retirement planning easier. Finally, it simplifies your getaways and gives you more peace of mind.
Tips for Finding the Perfect Summer Home
Now, onto the tips. Here are some ways to ensure you find the perfect summer home that meets your needs:
- Don’t rush: Summer may be coming up, but you don’t need to rush into your decision. A second home is usually a long-term investment, so make sure you do your proper research and are happy with your decision before taking the plunge.
- Research locations thoroughly: If you could spend your life in one other place than your home, where would it be? Make sure the locations you’re considering for your summer home have appealing features—ideally, you want personal experience visiting or living in the area(s) you’re considering. Research it thoroughly at the very least.
- Be realistic with your budget: Just because you have a max budget doesn’t mean you need to get near it. Try to go under your budget so you don’t have to worry about stretching your finances. Other expenses may also pop up.
- Don’t forget about taxes: The tax ramifications for a second home are complicated, so make sure you know the tax rules associated with them. You will also want to research tax rates for the area you’re considering.
What About Non-Summer Months?
You don’t want your home to just sit dormant when the weather isn’t warm. Use it as an investment opportunity! Rent out your home when you’re not using it and consider storing extra belongings in a storage facility during that time as well. Make sure you account for taxes associated with renting and be conservative when it comes to estimating your potential revenue. Finally, don’t forget about a mover for transporting your belongings safely.
If you’re searching for a summer home and need help relocating belongings, give the IMS Relocation team a call today for a no-obligation quote.