With the introduction of vaccines during the COVID-19 pandemic, many people sought a chance to get back to some sense of normalcy. Part of this included going on vacation. Families hit the road to visit other family members that they hadn’t seen for a while. Others decided that they needed a break from being sequestered in their homes for the better part of a year.
Many people decided to take these breaks at vacation houses. Beach houses and cabins all became getaway locations for individuals to relax at. Some individuals have considered making visits to these rental locations more permanent. Today what we’ll focus on is whether you should buy or rent a vacation house.
Do you want another mortgage payment?
Vacation homes are the perfect getaway options. You’re able to enjoy the experience of being on vacation while relaxing in the comfortable confines of a home. Families schedule entire summers around visiting a vacation house, enjoying the comforting vibe that the location brings with it. Some couples love getting away from it all by visiting a cabin in the rustic wilds, while still having all the creature comforts of home. As you continue to invest in these vacation rentals, the question eventually arises of whether you might want to turn your rental into a permanent purchase.
If you make a vacation rental your primary residence for vacationing, by purchasing it, the responsibility of the home becomes yours. If you don’t pay for the home completely at first, you’re going to have to make monthly mortgage payments. This will involve figuring out what your mortgage lending options are. Let’s say if you’re looking at purchasing a vacation house in New York, you’ll want to find out what your mortgage options in New York are.
If you are a current homeowner with a primary residence, you’ll have to factor in the monthly payments for your once-rental home. If you have to obtain a second mortgage from a mortgage servicer, you’ll have to meet a host of qualification requirements. Your credit score will have to be in good shape, and you’ll have to agree to the interest rate that your financial mortgage servicer gives you. Determining if you want to pay another mortgage payment will help you to decide whether you should buy or rent a vacation home.
How often will you be staying at your vacation home?
Many people across the United States don’t have the option to take vacations as much as they’d like. These getaways are often scheduled around a holiday or some other big event. In cases like these, time taken off work is a luxury commodity that becomes a cherished item in some cases. In cases like these, staying at vacation home rentals occasionally makes more sense than purchasing a vacation home as a second residence.
On the other hand, if taking a vacation as often as you breathe is in your near future, then purchasing a vacation home might work best. Your beach house on a nearby lake has become like a second home for you. Maybe that getaway cabin rental calls your name every two weekends out of the month. If you find yourself frequently visiting a vacation rental, maybe consider purchasing it. The frequency of how often people are able to take a vacation is a determining factor in whether a person should rent or buy a vacation home.
Do you want to turn your vacation rental into an investment opportunity?
There are a host of ways that you can invest your money. You can play the stock market, purchase certificates of deposit, and open high-yield savings accounts. Another way to invest your money is through acquiring property. A vacation rental can turn into a great investment opportunity. If you’re willing to put in the time and money into renting out this location, it can reap some great benefits in the long run.
As a homeowner and landlord, you’ll be tasked with keeping up the location through maintenance and cleaning services. If accepting such responsibility doesn’t appeal to you as much, maybe consider keeping your favorite getaway as a vacation rental.