Vacation Home by Barbara Neal Varma


Vacation Home by Barbara Neal Varma Imagine: waves crashing on a beach, the rhythmic rise and fall of the ocean haloed by a bright orange sunrise. A warm morning breeze carries the salty, heady scent of the sea as you stand watching from the bungalow's back deck, a steaming mug of coffee in hand. No nine-to-five to fight; no deadlines to race. This is your vacation, and this ocean, this moment, is in your own backyard. Let's face it, when you really want to relax and unwind, there's no place like home. Which is why many homeowners are looking for a second residence - a vacation home - to support their need for serious leisure retreat. While searching for that perfect second nest, it's good to remember what's truly important when buying a second home. It's more than just the standard requirements for room and board. It's knowing that the new house is just right for you and your family. Here's a Top Ten list of things to consider when purchasing a vacation home:
10. Can You Afford it? The second-home buying market is gaining momentum, thanks to the baby boomers coming of retirement age. That's good news for second-home shoppers who discover that because of the boomers' buying power, the cost of a vacation getaway is more within reach than ever before. "It's a powerful force that we're only seeing the beginning of," says Bob Walters, chief economist at Quicken Loans. "I think it's kind of a dream for a lot of people." Vacation home expert and author of "Profit from Your Vacation Home Dream," Christine Karpinski agrees that vacation homes are no longer for just the super rich. Still, she advises adding in lifestyle, other debts, expectations and your risk-taking threshold to the equation. "Be totally honest with yourself before you sign on the dotted line." 9. Rental Investment, Vacation Home or Both? How you answer this question will affect many of the other decisions involved in the purchase. If buying solely for personal use, you can let your preferences guide your way. But if you need to rent out the house to support costs, you'll want to put on your business-thinking cap. The tax deductions you can take depend on the amount of time the house is occupied for rental or personal use. These deductions will need to be balanced with your potential need for extra income. You may have your eye on that quaint and sunny beach house, but will need to rent it out to break even. Take the time to consider how you truly wish to use your new home.
8. Quality Time Like your primary residence, a vacation home is a commitment. Can you be there during times of trials, triumph and leaky faucets? (If not, consider hiring a property manager to care for your property.) A second home comes with a second set of responsibilities but the rewards can be many. With a little extra time and TLC, a vacation retreat can add a new, exciting dimension to your life. Promise to cherish, honor and repair when necessary, and you and your clan can have many years enjoying all the amenities of a home sweet second home. 7. Location Karpinski says, "The four criteria people look for in a vacation home are price, size, location, and view." In planning your second home purchase, consider which feature you're willing to compromise on when and if necessary. Purchase prices vary depending on where you buy. Vacation properties along the California or eastern coastlines, for example, will be pricey, but if you're willing to forgo a scenic view, you can afford a hot spot in Palm Springs or Pensacola. Size also matters, so if your vacation home is to be a romantic get-away for two (that the kids will only find out about when your will is read), you might opt for a cozy cottage on Cape Cod. 6. Location To determine if a prospective area is a good fit for you and your family, go online to research the areas you're considering. Where are the restaurants, golf courses, outlet malls, and on rainy days, the nearest movie theatre? Is the area safe for your family and pets to hang out? Look for places with year-round attractions where everyday errands can be topped off with extraordinary nightlife and daytime adventures. Check out the local Chamber of Commerce in prospective towns for a list of fun destinations within the radius of a day's drive. Then, when ready to buy, contact a local realtor in the area you want to get to know better. They already do. 5. Location Just as important as accessible recreation is the need for nearby medical facilities. Many paradise places are in tranquil but remote settings that, while romantic, would not be an ideal locale when suffering a bout of Montezuma's Revenge or something more serious. Check out the medical amenities in your target areas to make sure there are adequate facilities for any unplanned medical emergencies. Search out police and fire stations, too. They don't need to be your next-door neighbors, but it's good to know they're within reasonable reach. 4. Furnished or Unfurnished Are you the decorating type who enjoys sitting on your couch while knitting window treatments and watching HGTV? Then the unfurnished second nest is for you, allowing full opportunity to decorate by your own design. But if you're less inclined to go shopping the second time around for a houseful of living-ware, you might consider purchasing a second home already fitted with furniture, or negotiate with the current owner to leave certain vacation staples behind such as the BBQ grill, deck furniture, beach chairs, etc. High-end furniture items can be tacked on to the sale price at a cost far less than purchasing them piecemeal. Plus there's less moving hassle for both the sellers and you, the new family moving in. 3. What if Something Goes Wrong? Suppose you lose your job or the stock market takes a tumble along with your savings? Suppose it was a right decision at the wrong time, meaning you purchased when the prices where high, then the bottom fell out of the real estate market? All of the above could happen, but in avoiding the risk, you avoid the potential benefits of vacation home ownership. Take time to measure both your financial portfolio and your fear factor. Where do you draw the line in the beach sand? In this, Karpinksi believes it's better to risk a little than miss a lot. "To quote Kris Kristofferson," she says, "'I'd rather be sorry for something I've done than for something I didn't do.'" 2. Home, Clean Home If you're the type who regularly peels off the bedspread at even the finest hotels, unsure when it was last laundered, then staying in your own home during vacation provides a sense of cleanliness that can't be beat. Hotel rooms run the risk of others' mess as they leave behind visible - and not so invisible - traces of their previous stay in your current accommodations. In your own home, any spills and chills are your own. And (drum role please) the number one thing to consider when purchasing a vacation home is… 1. Do it for Love The best features of a vacation home are the little things that money can't rent: the growing picture collage on the refrigerator, the jigsaw puzzle everyone's working on in the den, the coffee table you found tucked in the clearance corner at The Great Indoors that fits four pairs of feet extended from the super-size family couch. Houses hold furniture, homes hold memories. So the next time you consider getting away from it all, consider this: What does a vacation home have that a rented respite never could? Love without reservations.