Making the Decision to Buy a Vacation Home
After a long, cold winter, summer is finally here, which means one thing: vacation. Most of us look forward to our summer vacation all year long, and many people have family traditions that dictate going to the same spot each year. Maybe your family enjoys spending a week or two at the beach, or maybe you’re the type that prefers a mountain retreat, a state park, or an amusement park destination. Whatever your preference, when it comes to vacationing we’re all looking forward to getting the most out of the trip. For more and more people, investing in a vacation home makes good financial sense, and ensures future generations will be able to enjoy time in a favorite place for years to come.
Benefits of Buying a Vacation Home
Low interest rates and plenty of inventory sent purchases of vacation homes rising last year. Sales of vacation homes have risen 57% since 2013, and investors continue to make the plunge into buying second homes. Aside from the obvious benefits of having a place at your favorite destination to call your own, there are several advantages to owning a vacation home:
- Property appreciation: Resort and vacation properties often increase in value.
- Tax benefits: Home equity interest payments and property taxes may have tax advantages.
- Rental opportunities: You may choose to rent your property when you and your family or friends aren’t using it.
- Income: Money from renting your vacation home could end up being a valuable source of income.
Depending on where you vacation and how much you spend each year on lodgings, actually purchasing a property could end up saving you money in the long run. Whether the home you’re buying is a modest beach house, a rustic cabin, or a condo in a resort, it’s property that you own, and an enviable asset to be able to have.
Before Buying a Vacation Home
Before making your decision, there are several important factors to consider when buying a vacation home:
- Can you afford it? Buy a vacation home because the money is available to do so, and don’t gamble that you’ll make a big return on your investment. If you can’t really afford it, don’t do it.
- Can you pay the associated costs? Owning a beach home or cabin versus simply renting one a couple of weeks a year means you are responsible for upkeep, maintenance, and any emergency situations that may come up. Be sure that is a responsibility you’re willing to assume.
- Study the market and watch for deals. Some properties and locations have already peaked, and you may end up spending more than what the actual property is worth. Do your homework and make sure the deal you’re getting is a good one.
Contact Our Experienced Real Estate Attorneys Today
If you’re thinking about buying a vacation home, contact our experienced New York real estate attorneys today. At Cavallo & Cavallo, we can help guide you through the entire process, making sure to protect your current assets while helping you to achieve your dreams for the future. With offices in the Bronx and New Rochelle, we’re your neighborhood law firm, and will provide you with the efficient and effective legal service you need to handle all your real estate planning needs.