If you’re lucky enough to have
reached the time in your life when you can seriously contemplate buying a
vacation home, there’s much to be excited about. According to the National
Association of Realtors, one in eight homeowners are thinking of buying a
second home. While summer may be the time of year you start to think longingly
about sun, sea and sand, it may not be the best time to buy a cottage.
Peak
of season is seldom a good idea
Avoiding peak seasons makes sense in
supply and demand terms. Since vacation homes can be sentimental investments,
many who’ve inherited them rent them out as additional sources of income so
they can hang onto a property. They may be sharing it with siblings or have had
to buy them out.
They also may be part-time vacation home investment owners who
got in early on a new resort but need to ensure 100 percent occupancy during
peak season to make their investment pay off.
Aim for the final weeks of the high
season to make your offer or hold off until just after peak season ends. If
you’re looking for a summer vacation home, the time between Labor Day and
Thanksgiving is the perfect window of opportunity. You’ll still take possession
early enough in the year to be able to get a glimpse of what future summers can
hold, and you’ll also have a chance to do any needed repairs before winter sets
in. Then you can spend the winter planning what you need to do to make the
place your own the following summer.
If you’re looking at a winter
vacation home, spring is the best time to make an offer. While diehards may
still be renting or occupying their vacation homes, hoping to get one or two
more days of spring skiing or boarding in, most will have placed their
properties on the market. Just be careful not to leave your offer for too late
in the year if the area you’re interested in is remote. Some owners board up
their properties for the off season, making it harder to get viewings. Also,
don’t forget the power of spring mud. Properties accessible through three
seasons may become harder to access during spring thawing and flooding.
Be
sure the time is right
Before buying a vacation home, you
need to think long and hard about a whole host of considerations. First and
foremost is whether you will be able to use it enough to make it worthwhile for
you financially. Even if you buy a vacation home and plan to rent it out to
defray expenses, that means your time there will be limited. While you may love
a cottage on a lake in fall, not everyone else does. If you can’t afford to
spend the 4th of July at your own cottage, this may not be the time to buy.
Second, have you considered all the duplicate expenses involved? Whether you want your vacation home to mirror
your principal residence in all ways, you can’t escape the fact that you’re
going to need two of everything now. Unless, that is, you want to treat every
weekend you spend at your vacation home like a camping trip (which may well be
the case). You’re not going to want to haul lawn mowers and leaf blowers to the
cottage every summer weekend. That goes double for appliances, linens and furniture.
You’ll also have a second set of bills for property taxes, insurance, yard
maintenance, internet and cleaning costs. In addition, there may be HOA fees,
too.
Third, what are your vacation goals?
If you want to visit every continent and are running out of time to tackle Asia
and Africa, does a vacation property make sense? If you find you’re drawn to
experiential vacations like hiking the Appalachian Trail, swimming with the
dolphins or building someone else a home with Habitat for Humanity, a vacation
home may be an anchor you don’t need.
On the other hand, if you know you
can afford to invest in a second property and have a long-term plan to use it
as a home base while you globetrot in retirement, or if you want your family to
have the freedom of the great outdoors while they’re growing up, it might just
be time to seize the day. <
This article was submitted by Richie Vraux, REALTOR with Better Homes and Gardens Real Estate/The Masiello Group. Reach out to him anytime at 207-317-1297.
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