Many people dream of having a vacation home. A second house somewhere a drive away to go on vacation for free and build equity, turning it into a great long-term investment, too. But there are a few things to consider before you plunge into this kind of purchase.

First, you want to consider what it will cost you. Now, this goes beyond just the mortgage and taxes and insurance, you also need to consider the utilities (because you’ll pay from them even when you’re not there), a home monitoring system to protect you from break-ins, and the number of home repairs which will be associated with the property. There are also time costs. Your vacations will never be the same once you own the property. You will find projects to repair on every trip and will have a need to go check on it even when you are not on vacation.

Which brings me to my next point: managing the property. This is something which can be done by you, if you go frequently, otherwise you will need to hire a third party to manage your property to help prevent small problems from growing into big ones.

Finally, you want to consider how you will afford the property. Does it make sense to buy the house cash or get a mortgage? This is where a qualified loan officer can help you determine what kind of interest rate, what kind of payments, and what kinds of options you can expect.

If you have any questions about the process of buying a vacation home, please contact me. If you have anything to add about buying a vacation home, please leave a comment.