Everyone wants a holiday home. Having a home to escape to in the winter months can be a great way to get in the mood for the holiday season. After all, your regular home is where you spend all your work time. When you’re ready to munch some fruit cake and pound down eggnog, you don’t want to look at the same old couch you sit on after a long day at work. So, how can you afford a holiday home? Well, before you go all out and buy that $8 million ski lodge in Breckenridge for retirement, we’ve got a handful of tips that you should consider first.
1. Location, location, location. No doubt you’ve heard this advice before, but it’s a good reminder. The same square footage can cost way more depending on where you decide to buy. For instance, if you sold your mansion in rural Iowa and moved to San Francisco, you might be able to afford a granny flat studio in the rough end of town. Be sure that you look into the average housing costs in the area you want to buy, and consider similar areas as well. For instance, if you are hung up on that Colorado ski lodge, it might be worth looking into similar properties in Idaho. The views will be just as grand, but the price tag won’t.
2. Know how to finance. For most people, the thought of putting down a few hundred thousand on a holiday home might seem outrageous. If you don’t even make a hundred grand in a year, how can you afford $400 grand for a holiday property? The secret is knowing how to finance. There are plenty of options for folks at all ends of the income and credit score spectrums. If you’re in good standing with financial institutions, you could score a sweet low-interest bank loan to finance that Florida beachside abode. If you’ve got a rough rep with creditors, though, don’t sweat – there are hard money lenders in Arizona that can get help you land that desert escape.
3. Consider your options. Just because you’re buying a vacation home doesn’t mean you only have the option to do it by yourself. You may have heard of timeshares before but not exactly been sure what they are. Basically, you and a few others buy into a property together. Let’s face it – it’s your vacation home, you’re not going to be there year-round. So, each person only buys in a bit, and you only go during your allotted time period. Time shares are a great way to still get that sweet vacation home experience at a fraction of the cost.
4. Offset the cost by renting. One of the best ways that you can pay for your vacation home is by renting it out using an online renting service. If you buy a luxury condo near Malibu and are worried about paying it off, letting people rent it for their own vacations is a great way to help. Plus, you’ll be helping them have a great vacation too! The holidays are all about spreading the love, so sharing your home with strangers who want to rent it out around Christmastime can be a generous and fun way to pay it off quickly.
5. Rent one out for yourself! If it looks like buying your own vacation home is a little out of the budget, that’s okay. One great option is to look online for a vacation home to rent during the holidays for you and your family. Instead of buying a home to sit around unoccupied all year, you could instead have fun trying out new places every year and making the most of each new place that you visit. Sure, it’s not the same as having a place of your own, but with so many fun and interesting rental options out there, you’ll be sure to have fun exploring the world of vacation rentals.
A holiday home can be a great option for those with the means. Before you take the plunge, just remember to think through all your options, and keep these 5 tips in mind!