Amazing Tips for Retirees to Make Their Vacation Dream Home Come True
Owning a vacation home is every retiree’s dream. A condo by the beach or a cozy cabin by the woods can be a cool retreat from the stresses of daily life or serve as a winter escape. However, exciting as the idea might sound, buying a second home is a big decision that requires careful planning and research. Whether you want to use it as an investment or eventually make it your primary home, there are key factors to consider such as tax implications and maintenance cost. Here are some important things to consider as you search for your perfect vacation home.
Have a Plan for How to Finance a Second Home
Do you need a mortgage to pay for your second home or cash? If you rely on mortgage ensure you can afford the monthly payments. Experts agree that a cash purchase is a better idea since getting into debt during retirement can result in financial restraints. One might want to have a separate account and set up automatic deposits to save toward buying a vacation home.
Get to Know More About the Quality of Life in the Area
The location is an important factor to consider if you want to buy a vacation home. Know more about the weather and spend some time with the local people before you purchase your property. Choose a place where there are fun and interesting things to do. A location that is desirable will prove profitable in case you want to sell your home in the future. A home near the beach will be easier to sell compared to one that is located on a mountain.
Decide Who Will Maintain the Home
There are high chances that a vacation home will be located far from the neighborhood. That means it will take a considerable amount of time before you pay it a visit. Repairs and maintenance tasks are vital during the time you are away.
There is the option of purchasing a home within retirement communities and over-55 developments, as these provide maintenance as part of the monthly fee. However, they can be costly since an additional fee is incurred if you are going to be away for an extended period of time.
Additionally, the bathrooms and kitchens of a vacation home often need to be updated. This can be a costly project, especially if you hire a contractor. For instance, the cost to remodel a bathroom in Mission Viejo, runs between $10,664 - $28,000.
Here are some practical tips on how to cut down the maintenance cost of a kitchen:
- Use cheap replacements. Kitchen recycling companies often sell a complete kitchen package inclusive of all kitchen appliances at affordable prices (one lucky homeowner found a complete kitchen from an old home for approximately $11,000). This can be a great option if you want to replace worn out cupboards.
- Post an ad on social media to hire low-cost painters. Make sure you check the references to ensure the workmanship will be up to par.
- Deal with subcontractors instead of a general contractor. The labor cost and markup materials amount to up to 50 percent more when you deal with a general contractor, so you will save a lot if you deal with a subcontractor.
How to Boost Your Insurance Protection on a Budget
Vacation rental property insurance protects the contents of your second home from the risk of fire, theft or other unforeseen occurrences. The challenge in obtaining insurance coverage is that most companies have an outrageous price because of the risks associated with an empty house, such as burglary, vandalism, and fire.
A home insurance policy will be ideal if you and your family will be the exclusive residents that occupy the home. It would also be wise to take up a flood insurance policy, especially if your home is located in a flood area. Therefore, take time to shop for the right policy within your budget needs — the right coverage will put your mind at ease as you enjoy your vacation home.
Purchasing a vacation home is an exciting prospect. However, you need to do some careful planning to ensure everything comes together without a hitch. After all, these are your retirement years, and you want to make sure they’re as enjoyable and stress-free as possible!
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