Vacation homes are great! For many families and individuals, purchasing a vacation property is the realization of a lifelong dream. Few things are more rewarding than kicking back in your own personal slice of heaven with friends and family in an area you hold near and dear to your heart.
Unfortunately, most families are unable to afford the “lifestyle” associated with owning a second home.
Whether your dream is to own a lakeside cabin in Maine, or a ski house in Colorado, here are 8 reasons why renting a vacation property may be a better option for you.
Flexibility: Unless you are fortunate enough to vacation whenever you wish, owning your own vacation home can restrict you to vacationing in the same area year after year. If you are truly in love with a particular area this may not be a problem.
No Maintenance: The repair costs associated with a vacation home can be expensive. Repair and maintenance costs in “vacation” hot spots are typically higher than what you might pay in other areas.
No Taxes: If you only spend a couple weeks a year at your vacation home, you could easily end up paying more in property taxes alone over what it would cost you to rent a similar home for the same amount of time.
No Cleaning: When you rent a vacation property, the home will most likely have been cleaned, the beds will have been made with fresh linens, and basic necessities (toilet paper, towels, soap,etc.) will have been restocked.
No Yard Work: The last thing most people want to do when they arrive at their vacation home is to mow the lawn, clean up falling leaves and branches, or repair a broken fence. These issues will be of no concern to you when you rent your vacation property.
Less Financial Commitment: You might be surprised what you can rent for $1000 t0 $1500 a week in many areas around the country. Buying a vacation home will usually require a large down payment, low debt to income ratios (DTI), and a huge cash reserve.
Less Liability: When you rent a vacation home, you are less liable if the neighbor’s kids come over to play and hurt themselves on the property.
No Surprises: When you own your own vacation home, you never know what you will find when you visit the property for the first time in a couple months. You may find that a water line has leaked, the roof failed, or the HVAC system is broken. You can pay thousands extra for a professional care taker to watch after your property while you’re not there, or you can take that same money and rent a vacation home instead.
If you’re the type of person who enjoys maintaining a second home while your on vacation, or you have the financial means to pay for additional help to help you fully enjoy your vacation property, owning a second home may be for you.
If you have dreamed about owning a vacation property, but do not thing you have the time or money to make it happen, I encourage you to look into the advantages of renting.
Great Resources for Finding Rental Properties:
www.cyberrentals.com- I have several friends who personally use this service to advertise their own vacation rental properties.
http://www.craigslist.com- Craigslist is another great resource for finding vacation properties. Simply go to the Craigslist page for the state or area you wish to visit and search under “vacation properties”.
http://www.vacationrentals.com- The site is the #1 vacation rental site according to a quick Google search. I have not personally used it to book a vacation home, however it seems to have a lot of properties listed from Maine, Florida, California, Colorado, and South Carolina (areas I like to visit).
Don’t Buy a Home Until You’re Ready
Don’t Get Screwed by Your Private Mortgage Insurance (PMI)
Borrowing 401k Savings to Refinance Mortgage
Dave Ramsey’s 7 Baby Steps to Financial Freedom
The Best Way to Pay Off Your Debt