7 Things To Know About Owning A Vacation Home

Are You Ready To Buy A Vacation Home?

Based on a study in 2018, just over 5% of Americans own a second home with roughly 1.4 million vacation homes sold last year.

There are many reasons to buy a vacation home. I can still remember the time we fell in love with our vacation home 5 years ago.  We visited one Saturday afternoon and the kids played in the pond & creeks while we sat on the deck and enjoyed the amazing weather and peace and quiet! We didn’t hear from them in nearly two hours and when they came home they were full of mud and dirt and smiles from ear to ear. It was an amazing experience and we were hooked!

Since then, we have become very familiar with the ‘good, bad and ugly’ of owning a vacation home. As amazing and as special as it is, like anything, it takes work.  The question we often ask ourselves is ‘Would we do it again knowing what we know now?’

The answer is definitely yes, but we would have asked more questions about our goals, done more research and been more realistic about the expectations that come with it. We don’t regret buying a vacation home, but being educated is important.

Here are 7 questions to ask yourself as you consider buying your first vacation property.

Know All Your Costs. How Much Is Too Much?

Similar to your primary residence, a vacation home comes with the similar costs and total cost of ownership. This will include property taxes, homeowners insurance and potentially other costs like mortgages, etc. Also, make sure you consider ongoing costs such as trash removal, cable, water, gas, electrical, etc. Remember, if you wont be there regularly you need to consider maintenance services as well. Make sure you take the time to understand these costs and budget accordingly. We are fortunate in that our vacation home does not carry a mortgage, but we still spends hundreds of dollars a month to sustain and manage. I would definitely recommend you check your costs on a vacation home calculator. Remember, owning a vacation home can be expensive!

Make A House A Home. What Will It Take?

Places stir memories of people, family, good laughs and amazing times together. Our vacation home has become a family gathering place for Thanksgiving, Christmas and several holidays throughout the year. It continues to be a tradition that has kept our family close and keeps us focused on what is important – time creating traditions and spending time together. As nice as a vacation home may be, in most cases it will still take time & effort (and money) to make it your home. Since we purchased our vacation home we have incurred costs of furniture, appliances, linens, dishes and pretty much everything in between. It is not as simple as mortgages and insurances. Remember, owning a vacation home is an investment.

Consider Travel Time. How Far Is Too Far?

In most scenarios a vacation home will be located some distance from your primary residence which will require either a long road trip or even a flight to reach the location. You should carefully consider this as you think about options for how you want to use the property – short, weekend trips, long 3 day holiday weekends or doing less frequent trips for longer periods of time such as weeklong vacations or extended periods during the holidays. Today, our vacation home is about 2 hours from our primary home and it works well for us.  That said, it is still 4 hours of windshield time to be able to visit it not to mention weather, road construction and other situations that can add time to a regular round trip. Remember, owning a vacation home takes planning.

Not Every Day is A Vacation.  Will You Put In The Time?

We love our vacation home. There is nothing better than the wonderful drive and pulling into the driveway and pouring that first cocktail and start the BBQ. At the same time, I can tell you stories of bats, snakes, mice, not having hot water, severe flooding and running out of wood for the fire-place in the middle of winter. A good number of your ‘vacation’ days may be spent running back and forth to your nearest hardware store and time learning how to fix unexpected problems. Like a car needing to be driven, homes need to be lived in regularly to avoid unwanted visitors and things breaking down. It is important you have realistic expectations and are committed to what it takes to have a vacation home. Remember, owning a vacation home takes work.

All Homes Have Maintenance. Are You Ready?

Remember it is a vacation home, it is not the Marriott hotel in Manhattan. Just like your primary home it takes maintenance. One home is a lot of work; two homes require double that.  You need to plan for it, manage it and take care of all your regular repairs. It was quite the learning curve over the first two years learning the importance of planning and maintenance not to mention that the nearest hardware store is 30 minutes away. Even simple things like stocking groceries, ordering wood for the winter or scheduling regular maintenance on recreational vehicles can take up time. Plan & budget accordingly. Remember, owning a vacation home takes a commitment.

How Much Do You Know About the Area You Want To Buy?

If you are paying a significant amount of money each month towards a vacation home you may feel that you constantly need to visit & spend time at the property to justify the investment you have made. You should make sure you enjoy visiting the location. Its important you have plenty to keep you busy during all seasons and it is a location that will grow with you and your family. We have come to enjoy our vacation home. We are also realistic that certain times of year are harder for us to make the commitment to visit regularly. As a family, have also found ways to enjoy new things about the property every year including new hiking trails, ATVs to go for long rides and have found nearby towns to visit to expand on the things we already love. Remember, owning a vacation home is a year round investment.

Who Will Watch It While You Are Away?

We are fortunate in that our vacation home is a quiet area.  We have neighbors who live there all year round (Thanks Dee & Mike!). They are very gracious to look after the property and keep an eye on things when we are not there. We are very lucky. You should think about who will watch the home while you are away. A break in, crime or emergency can be very frustrating when you are not around. A vacation home is meant to be a way to relax and enjoy yourself, not add additional stress to your already busy lives. Don’t forget to add the cost of a security or alarm system to your budget. Remember, owning a vacation home is just as important as your current home.

Remember that life is a game never won or lost, only played.