If you’re not a fan of harsh, cold winters (and I don’t know many people that are), you might have considered buying a vacation home to occupy in the Wintertime. Assuming you’re retired or your kids are out of school, this might be a dream come true!
While the idea of buying a Winter home is appealing, and for good reason, it’s important to consider a few things before going down that road. Here are some questions you’ll want to ask yourself before purchasing a Winter home:
Would you rent out your Winter home?
A major component of owning a vacation home that would-be buyers need to come to terms with is the fact that they’d be paying for an empty house 3/4ths of the year. Many owners of vacation homes choose to rent out their home during the off seasons, but not everyone embraces the idea of being a part-time landlord. Consider renting to make sure your ideal Winter home isn’t devastatingly expensive, and if you can’t stand the thought of renting out your home, make sure there are people in the general area that’ll be able to occasionally check in on it.
Have you considered taxes?
Purchasing a second home will not only increase your total expenses but your taxes as well, and the taxes you pay will become more complicated. By keeping good records on both homes, your life will be made much less stressful come April. With all of this in mind, the taxes you’ll have to pay on your Winter home should be factored into the cost of purchasing it in the first place.
Are you prepared to double some living expenses?
You’d be amazed at the number of hidden expenses that come with maintaining a Winter home. This could include homeowners insurance policies, furnishing, homeowners association (or general maintenance) costs, and so on. If your Winter home is in, say, Florida, you’ll also need to pay for costly flood insurance. Be sure to do your research before making the big move.
How well do you know the area you’re moving to?
When evaluating a potential Winter home, you’ll need to consider a different set of factors that you did when evaluating your main home. For starters, you’ll need to look at the home during the short period of time for which you’d be living there- between December and January. This will also help give you an idea of the traffic and general busyness in that area during the warm season.
Eyeing out potential homes requires a great deal of research and know-how, and it’s not going to come at once. Be sure to look at nearby attractions, dining options, local taxes, and the like before making the big move.
Have you considered travel costs?
The travel costs involved in moving to a different area of the U.S. (or even a different area of the world) for several months are much greater than the costs involved in spending one week abroad. You’ll need to bring more than a few suitcases, and assuming you’d like to see your family during the holidays, you might need to make the trek more than once.
Keeping all of these factors in mind will make the decision that much more satisfying if you do decide to purchase a Winter home, as you’ll know it was made with forethought and consideration. Whether you end up staying put or taking flight in the Winter- good luck!
Source: U.S. News & World Report