Can You Afford a Vacation Home?
Posted February 20, 2012on:
The idea of buying a vacation home is something that many Americans daydream about, but most people feel there’s no way they’d be able to afford a vacation home. The reality is that vacation homes don’t have to be as expensive as you think; with some creativity and flexibility, you can own a great vacation home. Owning a vacation home can also provide an unexpected source of income, and give you a retreat for weekends or summers away.
Consider Downsizing Your Home Needs
One way in which you can make room in your budget for a vacation home is to consider downsizing your home needs. Maybe you don’t need as much space in a vacation home, since you won’t be living there year-round. Maybe even a condo would make a sufficient vacation home; condos can be much cheaper than single-family dwellings. You could also downsize your primary home to make room in your budget for a vacation home, if there’s a place you particularly love and you feel it would be worth the compromise.
Look for Alternate Financing Options
Many people would have trouble qualifying for traditional financing for a vacation home, but alternate financing options may represent a good option. Things like seller financing, rent-to-own and other special loan financing may be a good way to build up a downpayment, or give yourself time to build up your income to qualify for traditional financing. Explore your financing options to determine whether there might be an alternative to traditional financing for your vacation home.
Rent the Home When You’re Not There
One thing many people don’t consider when they think about buying a vacation home is the income potential. That’s right; your vacation home could be earning you money when you’re not there! If you buy your vacation home in a particularly popular area, you could earn income that would cover the mortgage payment or other costs by renting it out when you’re not staying there. This gives you the best of all worlds; a place of your own to stay when you’re on vacation, and a way to earn income when you’re not!