![]() |
![]() |
|
|||||||
|
|
|
|
|
Published Jun 6, 2005
(Updated Mar 7, 2007)
It's already June, which means the prime season for rest and relaxation is now upon us. Whether embarking on a cross-country family getaway or going for a simple weekend retreat, this newsletter has something for you:
Pre-Vacation home checklist
Vacations are supposed to be a time of relaxation; a chance to escape the worries of everyday life. Yet many homeowners find themselves agonizing over little details they may have overlooked before leaving town. By paying attention to the needs of your home during the planning stages of your trip, you'll be able to enjoy a carefree vacation:
The great American road trip is a tradition almost as old as the automobile itself. Here are some helpful tips for those thinking of piling the family into the car for some summer adventure:
A blissful weekend getaway in a rented condo might be all it takes to get you thinking of buying a vacation spot of your own. If you can shake the irresistible urge to buy vacation property immediately, you'll find that there are many factors to consider first.
Come back to reality
It's hard to make a rational decision if you're caught up in the euphoria of being on vacation. Buying a vacation home is a serious investment; don't decide it all while on your trip. Come back to the real world and let your brain take over. If after time and careful thought you still think a vacation home is the right idea, you can proceed accordingly.
Be realistic about your vacation use
Is your family really going to use the home the ten or twenty days a year you're estimating? How hard was it to coordinate this year's vacation around everybody's busy schedules? Better yet, is your family going to feel like going to the same spot every single year?
Shying away from the hard questions about future use will only leave you with a vacation cottage you never visit. Vacation homes should be in a place your family loves and have attractions that never get old. For instance, families that ski often will probably get a lot of use out of a nice mountain cabin or condo. A vacation home should be purchased based on your family's identity, not on the success of one weekend outing.
Learn as much as possible about the market
You may not know as much about that "hot" vacation complex as you think, and their realtor may be drawing on your excitement rather than your reasoning ability. What has appreciation in the area been like in recent years? Is this a trendy vacation spot that won't be "in vogue" in two or three years? Is the area popular for vacation renters? Will rapid expansion hold down the rise of your home's value? Approach the purchase of a vacation home with the same care and dedication you did for the purchase of your current home.
Don't expect much rental income
Many people make the mistake of anticipating heaps of income from renting out their vacation home. Though it is possible to see a profit from a frequently rented vacation home, it's not exactly likely. The expenses of owning such a home are constant, while paying renters are not. It's best to view rental income as a way to offset some of the cost of ownership.
Tax benefits are complicated
The potential tax write-offs associated with owning a vacation home rely heavily on two factors: 1) how many days a year the home is rented out, and 2) how many days a year you and your family spend in the home. It's truly territory that requires the help of a good CPA.
Pick your partners well
You may be thinking of splitting the cost of a vacation home with a friend or relative. Such a partnership should only be made with a person you're very comfortable with. You'll have to divvy up costs, decide who gets use of the home at certain times, and deal with potential problems together. Would you be happy spending a weekend in your newly purchased home with this person and their family?
The bottom line
A vacation home should make you happy. While it certainly is a significant commitment of money, thinking solely in terms of profit potential will doom your chances of truly enjoying your getaway spot. Remember that a vacation home should be a place you'll escape to rather than a burden you'll want to escape from.
Cindy Joynt, Prudential Georgia Realty
400 North Lake Lanier
925 Sanders Road
Cumming, GA 30041
Primary Phone: 678-313-4018
Office Phone: 770-844-8484
Business Fax: 770-844-9875