Investing in a vacation home can be a great way to diversify your income, accumulate wealth, plan for retirement, and enjoy a vacation without any additional cost. Before making such a major investment, it is important to do your due diligence and understand what you are getting into. You should research different markets and consider pricing on websites such as Zillow, RedFin, Realtor, and MLS. Additionally, you should consider the location of your vacation home and the associated property taxes and rental policies.
When it comes to buying a vacation home, there is a big difference between buying a vacation home and a timeshare. Working with full-service managers like Vacasa can help ease the burden of maintaining a vacation home from afar, especially if it is a mountain property or cabin that may need additional care during the winter. If you plan to rent your vacation home, you can earn more income but you should also consider the downsides such as marketing your home to guests and navigating complex local short-term rental regulations. When April 15 arrives, like your main home, a vacation home is likely to make a big impact.
Recent figures from the National Association of Realtors show an upward trend in the number of second homes purchased for investment purposes, with rental properties outnumbering holiday homes by a large margin. If you want to come to your vacation home to relax, paying guests will likely want to do it too, especially if you buy a home that is pleasing to the eye and that is pet friendly. Buying a vacation home can be an exciting option for those who want to constantly return to the same place. Before making this major investment, it is important to do your due diligence and understand what you are getting into. With careful research and planning, investing in a vacation home can be a smart bet.