Ever since Mad Med hit the screen, people have gone literally mad for Mid-Century design. Every company has brought back pieces in their assortment from Horchow to Walmart…I started thinking..how cool would a Mid-Century patio look…I can picture Don Draper sitting in any of these….
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It’s a dream for many to own a vacation property. A place where you can relax and retreat to when you’re away, it’s your own little haven away from home. However, before purchasing a vacation home, no matter where it’s located in the world, there are certain advantages and downsides you should consider.
A way of ensuring that you’re ready for the investment, you’ll be in the best position possible. To help guide you, here is a list of the top pros and cons associated with purchasing a vacation home.
Let’s start with the pros:
Your Own Home to Enjoy
As mentioned above, by investing in a vacation home you’ll have your own private spot to enjoy. No longer will you be battling for the sun lounger or having to get up at a certain time to have breakfast. Now you’ll have a place in which you decide the rules.
No matter what time of the year you want to visit, the only barrier you’ll have to face is the flights or whatever transport you’ll need to take. Cutting the costs in the long term, this flexibility is very appealing.
You Can Use it as a Second Income
When you’re not using your vacation home, why not rent it out so that you can get an extra income? Helping to offset the cost of a mortgage and ensuring that it’s being made use of throughout the year, it’s a valuable asset to have.
Of course, before jumping into this, it’s vital that you’ve researched into the property market in that area, the legalities of this and are certain that the people who will be renting it are trustworthy.
You Can Benefit From Tax Deductions
A huge benefit that you can reap is tax deductions. Applied to your mortgage and any interest it’s accrued on it, it’s a big thing to consider if you’re looking to rent it out for up to two weeks a year. Deducted from your gross income, it’s a plus point that many owners will find to be invaluable.
It’s Convenient
By having a vacation home, it’s incredibly convenient for the next time you want to travel. Within this home, you can store clothes and other items you typically require when you’re away. This makes the packing situation a lot less stress the next time you want to go on vacation there.
Now onto the cons:
You’ll Need to Guarantee it Gets the Maintenance it Requires
As the property owner, you’ll need to ensure that it is maintained properly throughout the year. Whether this involves having someone to come in and clean it or repair any issues that need fixing, it’s a big burden to bear on top of your current home.
Extra costs that not everyone considers at the start of the process, it’s a responsibility that will last for the entire ownership of the property.
It’s Likely to Be Far Away
Now, this isn’t always the case. But if you’re thinking of purchasing a vacation home that’s further afield, you’ll have to think about the likeliness of you making full use of it throughout the year. For example, if it’s in a location that’s more than a couple of hours flight away, then the chances are that you’ll only be able to visit on average, twice a year.
This point puts into perspective how much you’re paying for the property versus how much you can actually use it.
A Lack of Flexibility
Even if you currently love the location you’re looking to purchase the vacation in, over time, there’s a chance that you might want to travel somewhere else. And while this is of course possible while owning the home, you might want to take full advantage of it each time you go away.
Making you feel tied to one place, it’s not the ideal option for avid travelers that love to explore new places each time.
The Cost
Following on from the above, perhaps the key reason why people are put off by vacation homes is because of the cost. Not only do you have to pay out for a deposit, but you’ll need to consider how much the mortgage or loan you’ve taken out will cost you each month, any taxes, maintenance, etc.
These costs could make it feel like it’s more affordable to stay in a hotel here and there rather than have a second property that you need to pay for each month. To determine whether it’s attainable from the start, it’s therefore a good idea to use the best home loan calculator available and budget how much your outgoings will be.