You probably know that vacation homes are on the rise. According to the Vacation Home Council, there were about 6.5 million vacation homes in the U.S. as of 2016. That’s almost double what it was just a decade ago! With that kind of popularity, it may seem like more and more people will soon be selling their primary residence and buying a getaway instead. But why do so many people invest in secondary residences? If you’re trying to decide whether you should buy a vacation home, here are six reasons why so many people have made that choice:
You want to own your own place
Many of us dream of owning our own home, but few of us can actually afford to buy a house in the city where we want to live. A vacation home is a great way to put down roots in a particular community without breaking the bank. If you’re able to find a vacation home that you can rent out during most of the year, you’ll have a lot of the same cost benefits of owning a home. You’ll pay property taxes and other ongoing costs of homeownership (like utilities, repairs, and insurance), but you’ll have a lot more flexibility in terms of when you’re actually living there.
You want a place to host friends and family
Many people who own vacation homes use them to host family and friends who come to visit. Many people who own vacation homes use them to host family and friends who come to visit. If you have kids, you probably know that bringing friends over can be a pain. It’s also sometimes hard for parents to find places that will host a sleepover. If you have a vacation home, you can host kids in a safe, comfortable environment. You’ll also make your friends’ lives easier.
You like the idea of renting out your home when you’re not using it
One of the most common reasons people buy vacation homes is because they hope to turn a profit on the property. A lot of people buy vacation homes with the intention of renting them out when they aren’t there. This is a great way to make a profit with a relatively low financial risk. You don’t have to worry about finding tenants and dealing with the headaches of rental property. You can let the owners’ association take care of issues with the property. And you can set your rental rates at a level that will easily cover your costs.
You love the location or the feel of a particular neighbourhood
If you love a particular neighbourhood, you may want to buy a vacation home there. If you love the area but can’t afford to buy a residence in the neighbourhood you want, buying a vacation home there is a great option. You can enjoy the neighbourhood and the area whenever you want and then rent out your home when you aren’t there.
You see real estate as an investment that pays for itself
For many people, the decision to buy a vacation home is largely financial. They see real estate as an investment that will pay for itself over time. If you buy a vacation home at a low price, you have a high chance of increasing the value of the property over time. That appreciation will help offset the cost of your home — and it will give you the financial security of a mortgage-free home.
It’s a compromise between owning and renting
Not everyone can afford to buy a house in the city where they want to live. And not everyone can afford to move to a more desirable area. When you buy a vacation home, you get the best of both worlds — you get the advantages of owning a home without many of the disadvantages. You can enjoy the advantages of living in a great city without the high cost that comes with actually living there.
If you’re thinking of buying a vacation home, make sure you’re making the right decision for yourself. Owning a vacation home is a long-term commitment. You’ll probably spend more time and energy caring for your vacation home than you would your primary residence. If you’re thinking of buying a vacation home, make sure that you have the time and energy to properly care for it. And make sure you’ve considered all the advantages and disadvantages of buying a vacation home — and that you’ve done your research on each potential property. A vacation home is a big investment. Before you make the decision to buy, make sure you know why you’re doing it — and that it’s the right decision for you.