Buying a House In a Resort Area Is Expensive, But Not Entirely Out Of Reach. Here’s How To Save Money To Purchase Your Vacation House!
August 29, 2016
Buying a Home in a Resort Community
There is nothing more exciting than owning a home in a resort area. Just the thought of it can send your mind to you already owning it. Picturing yourself by the fireplace reading a good book while it snows outside. However, also consider that you may end up broke, unable to rent it, unable to pay the repairs, or unable to afford traveling there. Not to scare you, but you have to think about all of the downsides before you bite the bullet.
The first thing you should know, which should be pretty obvious, is that resort homes are more expensive than primary homes. The price is going to vary greatly depending on the area of the property, whether it is historic or new construction, and how small or large it is. The views are also a big factor when it comes to the list price.
If your home is overlooking the mountain or the ocean, you can probably expect that you’ll be paying a pretty penny for it. The closer your home to the recreations of the resort, the higher the price will be.
You’ll always have to pay closing costs no matter what type of house you buy, and a resort home is not exempt from these costs. You should absolutely contact a realtor, and/or a real estate attorney to figure out how much all of this is going to cost you so that you can decide if you can afford it, and if you can, how much money you need to be putting aside.
Unless you’re Bill Gates, if you’re purchasing a resort home near a ski slope, you’re probably going to need to get a loan from the bank. You’ll have to first figure out how much you’d be able to afford for a mortgage each month. Once you figure that out, see if you have enough of a down payment to allow your mortgage to be that number each month. When you go to the bank, one thing to realize, which is not common knowledge, is that a second home is considered an investment property. How much you’ll pay will depend upon how often you are going to be at the home.
As with any home, you’re going to have to pay to keep the house up, pay your electric and water bills, pay for a landscaper, and other expenses that will depend on the climate and location of the home. Depending on those two things, you’ll be looking at higher or lower costs.
Annual property taxes are generally not cheap when it comes to resort homes. These are going to be determined based on how much the home is actually worth, as well as the location. Keep in mind that property taxes are not fixed. They change from year to year.
A great way to make some extra money toward paying the mortgage is to rent the home out when your’e gone. Speak with a realtor who can help you rent it, and ask her what the rental market is usually like at different seasons. Realize that since resorts are seasonal, you are not going to be able to keep the home rented at all times that you aren’t there.