What Considerations Should We Take into Account When Buying a Vacation Home?

If you are considering buying a vacation home, there are a few things that you want to consider—one of which is if you would be renting it out while you’re not using the property to help defray the costs associated with the property.

If you do decide to rent it out while you’re not using it, make sure that the property isn’t so expensive that if you had a long period where no one was renting the property, it wouldn’t adversely affect your finances. You should be able to easily afford the full expenses associated with the property.

Another really important thing is to not overestimate the amount of rents that you would receive. And the third thing would be, if you ever decided that you didn’t want that property, how quickly could you sell that property to get your money back?

When considering whether to buy a property for a vacation spot, the main thing is going to be if it’s for you or for you and potential renters.

Parkshore Wealth Management is a family-owned, independent, fee-only Registered Investment Advisor serving the greater Sacramento area with an office in Roseville, CA. We partner with financially responsible individuals and families who are eager to take positive steps that will allow them to use their money to build the life they desire. The firm is led by Harold Anderson, CFP®, and Daniel Andersen, CFP®, both members of NAPFA, the country's leading professional association of fee-only financial advisors.