Details matter for first-time vacation home buyers

A long workweek has many ready to get away from reality, even if it’s for a few days. Some people get away to different destinations, while others like to escape to a regular location every few weeks. It’s those individuals who may be interested in purchasing a vacation home, apartment or condo that they share with others for periods of time.

Here are some things to keep in mind when getting ready to make a vacation home purchase.

Create a strategy to pay for your investment

Make no mistake – not to burst some bubbles – but vacation homes are steep investments. Not just financially, but also in time. This is a place that you’ll be spending a decent amount of off time at. You’ll not only relax there, but keep up the appearance of the property as well. You can help finance your vacation home by renting it out when you don’t plan on staying there to generate some income. If you don’t want to rent the place out, make sure your budget has plenty of wiggle room to pay for multiple properties.

Where would you like for it to be?

In Northern California, there are several options that can be prime locations for a regular weekend or weekly getaway. If you love spending time in Wine Country, a location in St. Helena, Healdsburg or Angwin might be a suitable location for a regular weekend away. If you’re looking for a spot along the coast, Half Moon Bay, Bodega Bay and Santa Cruz could be in your sights.

Love gliding down the slopes? There are several cities along the shore of the California/Nevada border at Lake Tahoe that can provide a perfect setting for the home you want.

How many other investors are there?

It’s important to decide if you want sole or shared ownership. Do you prefer to have less decision makers involved in the process or would you rather have more people to reduce the overall costs?

If you opt for sole ownership, understand you will responsible for all the costs associated with the property. If you co-own, your costs will go down but so will the availability of your home along with your decision-making power in any long-term decisions. Both ways of purchasing the property have positive and negative effects. Figure out which direction you’re willing to go to find out how much you’ll have to invest.

Ready to invest into a vacation home? Take out some of the equity you’ve accumulated in your home over the past few years and put it towards the dream vacation home you’ve had your eye on for a long time. Visit our website to apply for a Home Equity Loan today!

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