2416 West Main Street
Visalia, California 93277

(559) 738-8600
info@hermeswealth.com

 

Retirement

Buying a Vacation Home? 5 Questions to Consider First

Buying a Vacation Home? 5 Questions to Consider First. If you and your family would like to call your favorite travel destination “home,” you may be considering purchasing a vacation property. This can be an exciting milestone, but there are a few things to consider first. Your financial professional might be able to provide you with some resources to help answer some of the critical questions.Buying a Vacation Home? 5 Questions to Consider First. If you and your family would like to call your favorite travel destination “home,” you may be considering purchasing a vacation property. This can be an exciting milestone, but there are a few things to consider first. Your financial professional might be able to provide you with some resources to help answer some of the critical questions.1. How Will I Use the Home? Think about how often the home will be used - and by who. Will you be renting it out? Can family come and stay when you’re not there? Or will it only be occupied a few weeks a year? Did You Know 600,000 Americans use online marketplaces to rent out their property to vacationers. Source 1.1. How Will I Use the Home? Think about how often the home will be used - and by who. Will you be renting it out? Can family come and stay when you’re not there? Or will it only be occupied a few weeks a year? Did You Know 600,000 Americans use online marketplaces to rent out their property to vacationers. Source 1.2. Am I Rushing This Decision? When are you making the decision to buy a second home? Is it right after a relaxing vacation at a new location? Or have you been considering this for awhile? A second home is a large expense, you’ll want to avoid being impulsive when making your decision. Tip: Travel to your desired location during each season to get a better feel for what it’s like all year round.2. Am I Rushing This Decision? When are you making the decision to buy a second home? Is it right after a relaxing vacation at a new location? Or have you been considering this for awhile? A second home is a large expense, you’ll want to avoid being impulsive when making your decision. Tip: Travel to your desired location during each season to get a better feel for what it’s like all year round.3. Have I Calculated the Costs? Aside from the cost of the house, you’ll need to prepare to pay the ongoing costs of owning a second home. These include: Insurance, property taxes, maintenance, property manager (if renting), and HOA or Amenity Fees (if any).3. Have I Calculated the Costs? Aside from the cost of the house, you’ll need to prepare to pay the ongoing costs of owning a second home. These include: Insurance, property taxes, maintenance, property manager (if renting), and HOA or Amenity Fees (if any).4. Are There Rules About Renting? If you plan on renting out your vacation home, check local laws and guidelines. Some places cap the number of days a home can be rented out or provide further restrictions on renting to vacationers.4. Are There Rules About Renting? If you plan on renting out your vacation home, check local laws and guidelines. Some places cap the number of days a home can be rented out or provide further restrictions on renting to vacationers.5. What Will I Do in an Emergency? In some instances, an emergency might be a broken water heater or an electrical problem. In other instances, it may be more severe. What's your plan? Would your home be within driving distance, or will you hire someone to check on it periodically throughout the year? Did you know on average, the US is hit by 6 hurricanes a year. Source 2. Sources: iPropertyManagement.com, October 19, 2021, Insurance Information Institute, October 19, 2021.5. What Will I Do in an Emergency? In some instances, an emergency might be a broken water heater or an electrical problem. In other instances, it may be more severe. What's your plan? Would your home be within driving distance, or will you hire someone to check on it periodically throughout the year? Did you know on average, the US is hit by 6 hurricanes a year. Source 2. Sources: Source 1. iPropertyManagement.com, October 19, 2021. Source 2. Insurance Information Institute, October 19, 2021.
 

Related Content

Breaking Down the Parts of Medicare

Breaking Down the Parts of Medicare

Medicare is broken down into four specific parts—but what do they mean? This article will help you understand each piece.

Suddenly Single: 3 Steps to Take Now

Suddenly Single: 3 Steps to Take Now

Have you found yourself suddenly single? Here are 3 steps to take right now.

Exploring Retirement Plans for Small Businesses

Exploring Retirement Plans for Small Businesses

Help small businesses make better retirement decisions for employees with this eye-catching and informative infographic.

 

Have A Question About This Topic?


Thank you! Oops!

Intellectual Property and Your Estate

Do you have intellectual property? Consider how you might include your IP into your estate strategy in this detailed article.

Succeeding at Business Succession

There are a number of reasons for business owners to consider a business succession plan sooner rather than later.

4 Steps to Protecting a Child with Disabilities

Planning for a child with special needs can be complicated, confusing, and even overwhelming.

View all articles

How Long Will Your Money Last?

See how long a lump sum of savings could last based on your withdrawal rate and return.

My Retirement Savings

See how your current savings rate and contributions may grow into retirement income.

Inflation & Retirement

See how inflation over time could affect the purchasing power of your retirement income.

View all calculators

Tuning Your Social Security Benefit

When should you take your Social Security benefit?

How to Bake a Pie-R-A

Roth IRAs are tax-advantaged differently from traditional IRAs. Do you know how?

Exit Strategies of the Rich and Famous

Estate conservation is too important to put off. Do you have a smart exit strategy?

View all videos