If you’ve never bought a second home before, you might have a lot of questions about owning a vacation property. Here are 4 of the most common questions about buying a vacation home to help you get started. 

Can I afford a second home? 

Buying an additional property is a big financial step. There are a lot of factors you need to consider other than just having a second mortgage. What are local property taxes like? How much should you set aside monthly for maintenance and repairs? How much will it cost to insure your new home? Do I want to rent it out when I am not using it? Before you get started looking, answer these questions for yourself and create a budget. Then you will be ready to start looking for your perfect vacation home. 

Should I rent out my vacation home?

One way that people manage to afford their second home is by renting it out when they are not using it. If you’ve dreamed of owning a cabin in the Northwoods of Wisconsin, but aren’t sure you can afford it, this option might be good for you. Before making this decision, consider the extra work that you will need to put into renting out your second home – managing bookings, cleaning, coordinating with guests, and the potential of extra maintenance that can come with having short-term renters.

What are the benefits of buying versus renting a vacation cabin?

While renting can be a good option for many, it might not be the best financial investment in the long term. If you know that you and your friends or family like to go to the same spot multiple times a year, investing in a vacation home is a great financial move. You will likely gain equity in the long run and have the additional asset of a second property to add to your financial portfolio. 

Do I need to hire a real estate agent? 

While it’s not legally required or needed, working with a real estate agent has numerous benefits. When you work with a real estate professional you have access to their professional network and an expert in the legal pieces that are involved with purchasing a property, and more. Check out our blog Five Reasons Why Working with a Real Estate Agent Matters.

We’re excited that you are considering purchasing a vacation home! Our team is here to answer all of your questions! Reach out to us today to learn more about buying a second property!