Buying a vacation home can have a lot of advantages over simply renting one.
The main thing you need to take into consideration when preparing to purchase a vacation home is how much time you plan on spending in your second home. If you are a short-term traveler and only plan on being there for a week or two out of the year, then it’s probably not optimal for you to purchase a vacation home. However, if you are a long-term traveler who’s heart belongs to one area, then purchasing a vacation home may be right up your alley!
Now unfortunately, there isn’t a “perfect answer” to whether you should buy or rent your vacation home. We can however, provide you with some valuable insight that will help you make an informed decision. For example, in certain areas of the United States, it is more affordable to buy than rent and vice versa. With that in mind, one of the major factors for purchasing a vacation home is planning out how long you will own the home. According to this chart from Trulia, it can be much cheaper to buy over the long-term:
As you can see in the chart above, all local markets have their differences when it comes to how much better it is to buy or rent the home. If you do want the vacation home over a long period of time, it is well worth your while to sit down and consider purchasing the home rather than renting it. If you visit the link for the chart above, you can adjust the 30-year fixed mortgage rate, income tax bracket, and length of time you plan on owning it to your own situation and liking.
Another beneficial factor to consider when you’re considering purchasing a vacation home is that you can come and go as you please. For example, if you are considering purchasing a riverfront vacation home near the Napa Riverfront in California, you will want to think of several factors. These might include:
- Do you own a boat or a yacht? If so, the Napa Yacht Club is a prime location for purchasing a vacation home. You will be able to keep your boat there year round.
- What is your primary mode of transportation when using your vacation home? If your second home is in New York, then public transportation is obviously an option. If however, your favorite vacation spot is again the Napa Riverfront, you’ll want to consider storing a second vehicle at your property. This is yet another reason to buy instead of rent your riverfront vacation home.
- The long term equity. As home values appreciate, which they always do over the long run, your investment will also appreciate. Waterfront vacation homes are prime real estate and can also be rented out to other vacationers year round to assist in making the mortgage payment.
Are you interested in purchasing a riverfront or waterfront vacation home in the Napa Valley? If so, contact the waterfront property expert, Donald Buresh, today at (707)-548-2545!