It’s summer time. And that means vacations. Families feel the draw of buying a 2nd home while they’re on vacation. On the trip to Florida, couples may think, “Wouldn’t it be great if we had a beach house?” Before you dig into the financials of buying a 2nd home, here are the top non-financial questions to ask yourself when thinking about purchasing a 2nd home:
- How much are you really able to use it? Maybe you’re retired and can spend 3 months per year at the 2nd home. Or maybe you’re a busy family with soccer and lots of obligations. Be realistic about how many days/weeks per year you would use a 2nd home.
- Do you want to obligate yourself to going to one vacation destination? Maybe your 2nd home is located at your favorite beach/lake/mountain and you don’t desire to go anywhere else. Or maybe you value traveling to see lots of different beaches/lakes/mountains/cities.
- Can you easily handle the upkeep of a 2nd property? If you’re going to rent it out part of the year, do you want the additional burden of managing renters and problems that will arise?
There’s not a right answer, but these are important questions that should be addressed if you’re thinking about buying a 2nd home.