Often times, families have a favorite vacation spot that they frequent. After so many years pass, its natural to mentally calculate how much you’ve been spending over the years on rent, accommodations, and travel. This causes a person (rightfully so), to wonder if they’re spending more renting than they would if they just purchased their own place. Well, there are lots of other things to factor in. Assuming you already own your own home, you should know that banks charge more for secondary residences than they do for primary ones. Below are some things you’ve got to think about when deciding if you should buy a resort house.
Obviously, when you rent, you are paying a nightly or weekly rent. The rent you’ve been paying decidedly has been based on how big the house is, how nice it is, what resort it’s located in, and the time of year that you go. For instance, if you love to go skiing during prime time, you’ve probably been shelling out big bucks. Ski resorts are actually one of the most popular places to buy, as families usually go to their homes there a few times a year to relax and ski. Rental costs in terms of ski resorts can seriously add up.
Keep in mind that when you buy a place, you’re going to have to pay higher tax and a higher mortgage than you are for your primary residence. The sis because the bank considers a second house an investment property, not a vacation home. You’re going to have to pay capital gains taxes as well, which are not cheap. One option is to save on some expenses by renting the home out when you’re not visiting. This won’t be an issue during prime seasons. It’s the off seasons that you’re likely to have trouble finding renters. This is why you can’t buy a property if you can only afford it by keeping it rented a few months out of the year. This means that you can’t afford the house, and should wait.
Buying a resort house is a very big commitment, and you really shouldn’t take the issue lightly. If you only visit twice a year and only stay for a few days, for example, it really might make more sense to keep renting when you go. If you go a few times a year and stay for weeks at a time, then, it may make more sense to buy. Good luck!