Knowing the best time to buy a vacation home is something you really need to think wisely through.
I understand the appeal and the “emotions” involved having owned two of my own vacation properties. I bought a really beautiful home years ago in the hills of the Smokey Mountains. It was called Cobly Knobb and it overlooked Bent Creek Golf Course, a really beautiful place. I kept this property for about 10 years.
The first couple years we used it on a regular basis just like anyone would. Many of our family members used it and enjoyed it immensely. That soon spilled over to our closest friends and what a joy it was to be able to share this place with those that we cared about the most. There were many opportunities also to let those that couldn’t afford to go away for a few days to relax and enjoy a beautiful place. I never charged a penny to anyone because it was something I just wanted to share. But as time went on we began using it less and less. Eventually we went a whole 13 months and did not go one time. I knew it was time to be a single-family homeowner again.
Fast forward a few years and me and a couple close friends decided that we would buy a condo in Destin repeating the vacation home process. We bought a beautiful condo at Silver Beach Towers in gorgeous Destin Florida. We were on the 12th floor with nothing but the beach between the Gulf and us. We bought it at preconstruction and over the next two years it tripled in value, oh boy, we thought! Then 2008 rolled around and for the next 24 months we rode that profitable condo right back to where we started. Fortunately we were able to get out without loosing any money. The friends, family and occasional paying customer visited but for the most part it was a real pretty “money pit”.
I share my own experiences simply to to give you some things to consider before making a commitment to buying a second home:
Do not buy a vacation home if:
- you’re primary residence has a mortgage.
- it’s more than a 4-hour drive, the further away the home is the less likely you will want to drive after the first year.
- it’s further than one hour from a major airport.
- you don’t get along with you’re extended family, because your vacation home just became theirs as well.
Consider a vacation home if:
- you can stroke a check for it.
- you really like the same view year after year.
- it’s in an area that appreciates in value.
- you don’t mind saying yes to multiple users.
- you are not buying it to inflate your ego. Do the math and count all the cost. Be sure it makes good sense.
What is your advice on knowing the best time to buy a vacation home?
Would love to hear your own experiences – good and bad.
