Cost saving tips for vacation home buyers

Owning a vacation home can be a dream come true or it can be a nightmare. If you are considering purchasing a vacation home there are several things you need to consider and your budget is foremost among them. Here are some cost-saving tips for vacation home buyers.

No one wants to find themselves overpaying for anything and a vacation home is no exception. Before you become too emotionally attached to any particular home, you need to check all the comps in the area and be sure that you are not overpaying. Finding a home that seems absolutely perfect can make you forget that there is a budget to consider.

Using a real estate agent gives you the added advantage of understanding what houses in the neighborhood have been selling for. This allows you to make a good offer that can help you get the home you love while saving as much money as possible.

One way to save money on a rental home is to purchase it with another couple or family. This can create problems but if this is someone you know well or have vacationed with before it can be a way to afford a vacation home that might be beyond your means otherwise. Wepurchased our lake cottage with our daughter and her husband and it has worked out beautifully.

Once you have found a house that you think is perfect for your family, you need to spend the money to have a home inspection. While this may seem like an extra expense it is one of the most cost effective things that you can do. Without this inspection, you may find out after you own your dream vacation home that you need a new roof, have faulty electric or need a new septic system. The inspection should bring to light most problems that exist and these can then be negotiated with the seller.

There are other things that you need to consider when you are looking for your vacation home. Are you looking for a place that is year round? Will you need to pay for heating during the winter months? What are the water and sewer charges in the town where your home is located?  Also, a wise man once told me, waterfront property will never go down in value, there is only so much of it in the world. 

Are there services in the home that can be disconnected during the offseason? You may want to have cable and the Internet while you are using your new vacation home but if it is a summer home, you do not want the expense during the months that you will not be visiting.

Is the vacation home rentable and will you want to be renting it when you are not using it? 

This is a very good way to help afford your dream vacation home. If you decide that you want to rent the vacation home, you need to talk to your home insurance company. The liability insurance required for a rental property is different than insurance needed if only you will be using the vacation home.

There are many benefits to renting out the home including tax benefits. Repairs and depreciation can play into the figures as well. If you rent out your vacation home when you are not using it, it may be enough to pay the mortgage, taxes, insurance and other expenses involved in owning a home.

On the downside, it means not leaving your personal things out and available. And, of course, there is always the potential for damage to the home.

Owning a vacation home is a very good investment if you buy in an area where home prices remain stable and other people want to visit. But maybe you just want a place to get away and relax and have no intention of ever renting.

You must be sure that you can handle the costs without rental income. Then your vacation home will prove to be the home of your dreams and not a nightmare that leaves you financially drained and emotionally exhausted