If the thought of having another place of your own to escape to during holidays sounds exciting to you, it’s time to talk about buying a holiday home. Especially now that fixed mortgage rates are so low, you could secure a major investment and have a little fun in the process. But owning a holiday home isn’t always a festive engagement. Here are the pros and cons to consider.
Start by asking the pertinent questions. If you’re like most people, you likely arrived at your decision to get a holiday home while you were actually on holiday enjoying all of the finer things. But it can be easy to see the world with rose-coloured lenses in this type of situation, so you should ask yourself some questions before you jump into the home-buying process again.
First, think about your usual holiday schedule. This is a big factor in most people’s decision to buy a holiday home. How often do you actually go on holiday? And when are the times of year that you are most likely to go on holiday? If you only get away once or twice a year, investing in another home many not be worth the extra time, energy and finances. Or, if you enjoy visiting different places each time you get the chance to vacation, having a home that you feel obligated to check up on could actually ruin your fun.
You’ll also need to tackle is how much mortgage or rent you can afford. After doing some researching on Rate Supermarket you may be able to come up with a down payment and mortgage schedule that makes your holiday home seem even more feasible. And if you are going to buy a place, you could always try to find renters for the times that you aren’t using it. This will help you strike a balance between having a convenient getaway and being financially able to maintain it.
Next, you’ll need to draw advice from the cardinal rule in real estate: location, location, location. You’ll want your holiday home to be close enough to drive to but far away enough from the city that you can feel relaxed once you arrive. If you plan on leasing it while you’re not using it, buy your holiday home in an area where it will be easy to find renters. It may seem like a dream come true to have a beach house or a cabin in the mountains, but if you can’t bear the extra financial responsibility of another house payment without bringing extra income through leasing it, this could be a trap.
Having a holiday home can be a rewarding venture, but only if you’re prepared for the ups and downs. After you’ve thought it through carefully, you’ll be ready to find a getaway that makes the investment worthwhile.