Daydreaming at work about that perfect getaway?
Maybe it’s a cabin in the mountains, or a bungalow on the beach.
If it’s a vacation home you’re looking for, proceed cautiously.
That blissful dream of a second home can all too easily morph into a nightmare scenario if costs get out of hand. It’s amazing how the expenses add up!
Before you even think about a vacation home, do your homework.
Sort out all the costs and make sure to pick a home in an attractive rental and resale market.
Renting out the home can help cover costs, especially if you are not able to use it all the time, and a strong resale market means that – if you do need to sell – you can break even or maybe even make a tidy profit.
Realtor.com mapped out the 10 hottest vacation home markets in the U.S. (see chart).
No surprise. Two of the locations are in Florida, and may be more affordable than you think.
But don’t expect to turn any quick profits, say the experts at Realtor.com. Due to the high costs involved in real estate, you need to stick it out for the long haul, they caution.
Here’s another tip. Whether for your personal use, or as a long-term investment, buying a second home is always an expensive undertaking. So make sure to buy only in a place you really love and want to spend time in.