The call of fancy vacation locations and the additional earnings that can come along with this type of home may appeal to many homebuyers, but a lot of time and money can go into maintaining a second property. If you’re currently considering a vacation home for your own use or as a potential investment, here are a few factors to consider before jumping into the fray of a long distance home.
Will You Use It Enough?
A home in a far-off place can be a great means of having a place to visit each year, but one of the problems with this type of home is that it often doesn’t get enough use to justify all of the associated costs. While things like timeshares can minimize this problem, buying your own home may mean that you’ll be compelled to visit quite frequently and you may feel the need to commit to one option when it comes to vacation time.
Do You Want To Worry About Maintenance?
Like any home, a vacation property is going to have both large and small maintenance issues that need to be fixed here and there, and this can be hard to get to if you live a 5-hour plane ride away. Maintenance isn’t necessarily a deal breaker when it comes to a second home, but you’ll want to determine if you’re willing to do the work when you’re spending time there or whether you’d rather hire someone who will do all of the little fix-ups for you.
Is It Really Affordable?
When going into an investment as significant as a home for pleasure, it can be easy for people to be obscured by what they want and not what they need, but this sometimes means people will take a financial risk. Instead of throwing caution to the wind, ensure you sit down and determine the monthly costs, maintenance fees and property taxes of your potential property. Determining how this lines up with all your other debts will help you decide if the purchase is really feasible.
Sunny beaches and trendy cities may seem like a foolproof investment, but it’s important to consider the cost effectiveness and all of the maintenance required before you commit to a second home abroad. If you’re currently looking for a home in an exotic locale, contact your local mortgage professional for more information.Share
About the Author:Babak Moghaddam graduated from University of Southern California in 1985. He entered the mortgage industry as a compliance auditor at the Bank of New York in 1986 and completed his masters in Business Administration two years later. After seventeen years in the traditional mortgage banking world Babak finally transformed this vision into his own practice in 2002 when he formed Charter Pacific Lending Corp, a mortgage company that has provided over $900 Million in residential real estate loans throughout Southern California. Babak and his team do things a little differently than other mortgage providers. They work as financial advisors, because they have come to realize that a mortgage is a very powerful financial tool. And just like any other financial tool, it should be managed as part of the overall financial management plan to reach every home owner’s long and short-term financial goals much faster. You can contact Babak for a free consultation and strategy session at (800) 322-1217 X103.