Finding accommodation for your next summer vacation consists of rifling through brochures and websites for the best resort or hotel in your location of choice. Those who tend to vacation in the same place are also probably noticing that the prices of hotels and vacation rentals are increasing yearly. With all things considered, why spend a dime more on renting out vacation spaces if you do not have equity?
Purchasing a vacation home allows you to have a consistent, fun place to gather your loved ones and enjoy the warmer weather or snow-filled holidays while retaining an investment that tends to increase in value over time. Before scouring the internet for new properties in Massachusetts, here are five things you should consider before purchasing your vacation home.
Consider the pros and cons
Even with the less fun aspects considered, having your own vacation home can provide many benefits. The biggest plus to having this space is knowing you always have somewhere to escape when you need a break. You have 24/7 access to the property and can design it just how you like instead of renting out a property you have little to no control over.
It is also a great investment opportunity, as homes in prime vacation spots throughout Massachusetts continue to skyrocket in value throughout the years. You can also rent the property out when not in use, which is a great form of passive income. During the summer, when festivals and concerts are plentiful, vacationers will look for a place close to the action and pay a premium for a great property.
Determine your budget
Having your vacation home as an income source forces you to pay additional taxes on the property, which can quickly add up if you do not properly research the best rental price for the property. Thankfully, owning a vacation home can offer tax breaks for those who rent out the space for 14 days or less per year, so you can pocket a nice profit without having to dish any out for taxes.
Find a location that fits your needs
Also, think about the ways you will use the home. Do you plan on inviting the whole family over for a long weekend full of outdoor activities? Then a Winchester home with lots of backyard space that is far away from your neighbors may be perfect for you. Are you more concerned with being able to access your boat without straying too far from the property? A Manchester estate right by the water could be the answer. Either way, pay close attention to what you actually want out of the experience and tailor your location to those requirements.
Are the market conditions favorable for purchasing a vacation home?
Though this might make you nervous about purchasing a property, have no fear. Despite the commotion, rates are pretty regular at the moment and are not projected to spike dramatically in the coming months. With that said, market inventory has been on the lower side for the past couple of years, and if you wait too long, you may miss out on securing the best property for your needs and expectations. There is truly no better time than now to begin searching for your vacation home, and with the right real estate agent, you can score the deal of a lifetime on the property of your choice.
Review options for rental income
Though you will have to pay certain taxes if you rent out the property and use it personally for more than two weeks out of the year, you can receive tax deductions on home expenses like supplies, insurance, and repairs, as they are necessary to conduct business. Renting is a great way to lessen the personal cost of homeownership, as long as it is permissible by local laws and your property’s HOA.