Are you looking for a surefire way to enjoy your golden years? Maybe you should look into buying a vacation home. This is definitely a big purchase, but if you play your cards right, you could turn your dream second home into a smart investment. Whatever your reasons may be for looking for a second home, here are some tips to guide you through the process.
Only Buy What You Can Afford
Just like if you were purchasing a primary living residence, you need to know what you can afford to spend on a vacation home. An online calculator is a really helpful tool for getting an idea of how much you can spend on an additional mortgage every month, but if the amount it calculates is less than what you were hoping for, don’t be disheartened. If you plan on renting it out when you’re not using it, and you opt for something a little smaller, this could be the best of both worlds.
As you start to hunt for the right property, survey the market first to get an idea of what you can expect to pay. By taking the market temperature to see how competitive it is, you can also get a sense of whether it’s more of a buyers’ market, which is to your benefit. Case in point, the Chandler market is somewhat competitive, with most homes selling for around their asking price. However, since homes are currently sitting on the market for an average of 47 days, you may be able to negotiate a lower price on a property with a motivated seller who doesn’t want to wait over a month to accept an offer. Having your budget figured out before you start looking at homes will help you gain a competitive edge from the get-go.
Your Second Home Can Pay for Itself
A vacation home can be a great spot to spend time relaxing in retirement. For many retirees, though, buying a second home is about more than having a place to unwind. Savvy seniors can easily turn their second homes into investment properties — if they are smart when buying and managing those properties.
If making a profit is one of your reasons for purchasing a second home, you may want to find one that doesn’t require a lot of maintenance. Also, you will need to think about renting it when you are not there. Renting your home can pay for the mortgage and other costs, but be aware of tax restrictions that may apply to your rental income. As a tax benefit, however, your rental-related expenses reduce your taxable income.
There are other tax-related things to think about, too. For instance, if you register your rental business as an LLC, you can take advantage of pass-through taxation. Plus, if you decide to expand, an LLC can grow with you, and you can even purchase other rental properties through your LLC. The LLC Arizona cost is under $50 when you go through an online service, and you’ll be up and running in a jiffy.
Make Sure Your Home Is Secure at All Times
Whether your vacation home will be an investment or a place for your family to gather, you are going to need to protect it. With a vacation home, you can get peace of mind by investing in a quality home security system. Security systems will protect your home from intruders, and can even alert authorities of a carbon monoxide leak or fire. You can find helpful search tools online to find a reliable system that will check all your security boxes.
If you won’t be renting out your home and it will remain unoccupied for weeks at a time, you could consider home security cameras too, which will let you keep an eye on your property from afar. For those times your home will be empty, you’ll want to implement security and maintenance checks to reduce the chances of an incident while you are away. Make sure all doors and windows are properly secured, and put away outdoor furniture and decor during the stormy months.
Make Your House Feel Like a Home for You or Rental Guests
Whether you plan on using your home as a source of rental income or being the only occupant of your vacation property, you’ll want it to have a comfortable and eye-catching interior. Not only will styling your home make you feel happier while you’re there, you’ll also make it more appealing to potential renters when they look at your home’s online listing. This can be an overwhelming process to do on your home, but the experts at Styling and Staging are here to help. With a simple 3-step process, we’ll help you create a plan for designing your home to reflect your unique style while making it a more organized, functional space. Contact us online or give us a call at 847-815-6167 to schedule your consultation.
Buying a vacation home is a common dream for many retirees. With the right planning and some smart thinking, you can turn your own vacation home dreams into a reality. You can rent out your home to offset expenses or just pick a property that won’t completely drain your savings to maintain. Regardless of how you choose to invest in your second home, having a detailed plan is your best bet for really enjoying your investment.
For all of your home’s interior design needs, contact Styling and Staging. We’ll help you prep your home for sale or make your new property a reflection of you.
Article: Jim Vogel, Elderaction.org
Photo Credit: Pexels