A vacation home is more than an investment. It's a destination where you can relax, spend time with family and loved ones, and enjoy your favorite attractions in a destination that feels like a home away from home. But before you can plan your first getaway to your vacation home, you must choose a home that's the perfect fit — and the right financial move for you and your family. Buying a vacation home is a significant lifestyle change, and the RE/MAX TRU team is here to help you find a vacation property you'll love for years to come. Start the process by asking yourself these six questions.
1. What benefits will you love most about your vacation home?
A vacation getaway should be a place where you can relax, recharge, and create beautiful memories. But that looks different for every vacationer. Do you love visiting historical sites like the Ocmulgee Mounds National Historical Park or the Allman Brothers Band Museum? Does your perfect annual vacation include a trip to Amerson River Park and other nature preserves in Georgia? Alternatively, your dream vacation might be relaxed shopping and entertainment during the day before returning to a luxurious home in downtown Macon.
So, sit and write down the details of your perfect vacation, and have your family participate. These considerations can help shape all the details of your vacation home, including:
- The town, neighborhood, or street to buy a property.
- The size of the property.
- Features, such as a pool or a big kitchen, may be high-priority amenities if you want to entertain or cook, or they may not be features you want if you plan on spending most of your vacation outside of the home.
Your vacation home should be a big part of your vacation, down to the last detail. Once you have a clear vision, your real estate agent can help create a list of properties that fit your needs.
2. Can you afford a vacation home without feeling stressed?
Buying a new property is always a little overwhelming, but it's important to make sure that the stress doesn't extend to your finances or lifestyle after the purchase. Work with your financial advisor and real estate agent to determine financial guidelines for your vacation home, such as:
- How much you can spend based on your debt-to-income ratio and monthly income.
- Your ability to comfortably afford a down payment that fits favorable loan requirements or eliminates private mortgage insurance.
- Whether you need to liquidate some investments to fund the purchase.
- Potential tax deductions for your vacation home.
- The anticipated closing costs, renovation costs, and other expenses for making the property vacation ready.
You may want to spend a little extra for a historical property in Athens or love the idea of a condo in the middle of downtown Atlanta. This step will help you get a feel for your budget, the median prices for the types of homes you like, and what financial strategies can make your vacation home a reality.
3. What will you do with your vacation home when you're not vacationing?
Vacation homes don't have to sit idle when you're not in town. Using them as rental property is a common strategy people use to afford a second home more easily and even turn a profit on the investment. Longer-term tenant agreements of six to nine months can keep your vacation home occupied and monitored while you're not using it, and then you can take a long vacation once or twice a year before the cycle starts again. Alternatively, you can use the property as an Airbnb or vacation rental, especially if top vacation attractions are nearby. You can then visit when you please, such as for frequent weekend trips, and schedule bookings around your travel plans.
Pro tip: Does renting out a vacation home sound interesting? Let your real estate agent know; they can help you navigate homeowner association (HOA) requirements to ensure you buy in an area that allows short-term rentals.
Pro tip: Does renting out a vacation home sound interesting? Let your real estate agent know; they can help you navigate homeowner association (HOA) requirements to ensure you buy in an area that allows short-term rentals.
4. Do you love the destination enough to keep coming back?
The most important factor to consider for your vacation home is whether you will enjoy the space. Are there enough attractions to keep you coming back year after year? You could purchase a vacation home near aging parents, extended family, recreational and entertaining attractions you've loved for a long time, and other fixtures that keep you returning for a lovely vacation every season or every year.
5. Where does a vacation home fit into your long-term financial plans?
Earlier, we discussed the importance of making sure that your vacation home won't become a source of financial stress. But it's just as important to consider where it fits into your long-term financial strategies, such as retirement or estate planning. Ask yourself (or discuss with your trusted advisor):
- Can a vacation home that doubles as a rental investment become a supplemental income source for decades?
- Is the property likely to continue appreciating over the next 20 to 30 years?
- Would your vacation home be an excellent property to downsize to when you begin to consider retirement?
Your vacation home can be much more than a luxury property you can afford — it can be a savvy move that strengthens your financial portfolio.
6. What kind of “home” is your ideal vacation home?
Depending on the neighborhood you prefer, there are many different property types to choose from. You might have:
- A single-family residence with a large lot size.
- A townhome.
- A condo with an active HOA.
- A home within a 55+ or managed community.
An ideal vacation home might differ entirely from your primary residence, such as not having a lawn that requires maintenance or having lots of space for guests. Your real estate agent can help you consider options with various square footage, features, maintenance requirements, or HOA fees.
Start answering these questions with the help of RE/MAX TRU, your local RE/MAX team
As you read through these questions, you might already have a solid vision of what you want to see in your vacation home. Whether you're still exploring many potential options or you're ready to begin searching for and buying a vacation home, RE/MAX TRU is here to help. Schedule a conversation with an experienced local real estate agent to discuss your budget, location, and wish list features.
