Is Buying a Vacation Home Right for You? Key Factors to Consider This Summer

A lot of people are making plans to head out on vacation this summer, and if you have a little extra money may be thinking of getting a permanent vacation home.

Kristin Afelumo with Her Planning joined News On 6 at Noon to talk about weighing buying versus renting.

Renting vs Buying A Vacation Home

One of the first considerations is how frequently the property will be used. If a family visits a location infrequently, renting may be the more economical option.

Afelumo said you have to be smart when it comes to buying a home. She says that many people buy with the hope of generating rental income, but the success of this strategy largely depends on the location’s year-round appeal. Areas with consistent tourist traffic may offer better rental opportunities compared to seasonal destinations.

"So it's definitely something that I would do some research on with a client. The first step I always have them go through is, think about your cash flow. What can you afford? Then we go online and see how much mortgage they could get and work backwards to check some local listings and figure out how much they could buy with their budget. And of course, engaging a realtor makes a lot of sense here too," said Afelumo.

Does Your Lifestyle Support The Commitment to a Vacation Home

Lifestyle preferences also play a significant role in the decision to rent or buy a vacation home.

Buyers should assess their vacation habits and whether they have a consistent destination or prefer exploring different places. Ownership comes with additional responsibilities like maintenance, homeowner associations (HOAs), and possible restrictions on rental listings, making it essential to evaluate the long-term commitment involved.

"Consider the lifestyle you want to have when you're on vacation. And so, are you the type of family or person who vacations in the same spot every single year? If so, buying might make more sense," said Afelumo.