A
vacation property can be a terrific investment. Still, too many owners end up
selling or losing their second home because they haven’t taken into account all
the hidden costs. Here are a few expenses to consider.
Furnishing
You’ve
probably collected the furniture in your primary residence gradually, spreading
the cost over several years. But unless you buy your vacation home fully or
partly furnished, you now have several rooms to furnish completely and all at
once. While you may be able to find an extra couch or table lying around, other
items like large appliances and beds will probably have to be bought--and
whether you go new or used, procuring this stuff all at once can have a huge
financial impact.
Maintenance
Renters
can be pretty hard on vacation properties. Consequently, you can expect the
expense of keeping your place in shape (cleaning, fixing, replacing, etc.) to
be even higher than a standard rental property. If you live far away from your
vacation property, you’ll also have to consider the cost of hiring someone to
maintain it.
Environmental
Factors
However
idyllic they may seem, local environments in vacation locales often take their
toll on homes in the area. Whether it’s salt and surf at the beach, or cold and
heavy snowfall in the mountains, harsh conditions (or natural disasters) can
lead to more costly maintenance and repairs in the long term.
Time
Off Work
Whether
you hire the maintenance of your vacation property out to a manager or company
or handle it yourself, you’ll most likely have to take a few days off twice a
year: once to prepare the property for rental season, and once to close up for
the off season. Whether or not you’re losing money during these days, you’re
definitely losing precious time off that you could have spent relaxing.
