Are you thinking about buying a summer home? If so, congrats! Before you put a payment down, there are a few things to think about before making your decision. Here are a few key factors to keep in mind:
Where do you want to buy a summer home? Do you have a specific location in mind or are you just picturing a hammock on a beach somewhere? You’ll want to consider both the proximity of your summer home to your primary residence, as well as its location within the state or region.
If you live in New England, for example, you may want to purchase a summer home in Maine or New Hampshire so you can enjoy the cool ocean breezes. If you live further south, such as in Virginia, you may want to buy a place closer to the water so you can take advantage of the warmer temperatures.
Budget is one of the most important factors to consider when buying a summer home. How much can you afford to pay? What is a reasonable budget for you? Once you know how much you plan to spend, you may reconsider the size, location, and features of the home.
How large of a summer home do you need? Will it just be for you, or do you plan on entertaining guests? If you have a large family, you’ll need more space than someone who is single or has a small family. If it’s just you or you and your spouse, you may consider getting a little bungalow on the beach.
Maintenance and utilities
Don’t forget about the ongoing costs of maintaining a summer home. From property taxes to utility bills, there are a number of expenses that come with owning a second home. Repairs can be an issue, too. Make sure you factor these costs into your budget before making a purchase.
When do you plan on using your summer home? If you only plan on spending a few weeks there each year, you may not want to buy a place that is as large or expensive as someone who plans on living there for half the year. If you plan on renting it out when you’re not using it, you’ll need to decide if you want to manage the property yourself or hire a property management company.
If you’re taking a mortgage out to buy your summer home, it might be a good idea to look into life insurance. The death benefit from life insurance can help your heirs pay off the mortgage if you pass away unexpectedly.
If you opt for a permanent life insurance policy like universal life insurance, which accumulates a cash value that grows over time, you can borrow against the cash value for any reason, including home repairs (note that borrowing against the policy reduces its cash value).
Enjoying your summer home
These are just a few of the things you’ll need to consider before buying a summer home. With careful planning and consideration, you can find the perfect place to enjoy your summers for years to come!