6 Questions to Answer Before Buying a Vacation Home

Before you take the long-awaited plunge and add another mortgage payment to your monthly expenses, ask yourself these six important questions before buying a vacation home and give yourself some peace of mind. After all, a vacation home is supposed to be a place to relax and unwind.

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Does This Location Make Sense for a Weekend Getaway?

Having a cottage in a secluded area, miles from anywhere may be just the peace and quiet you’re searching for. But remember: you still have to get there. Often people fall in love with vacation properties and don’t realize the travel time to get there can be long and expensive. Over time, they visit their vacation home less and less, and don’t get the most out of their investment.

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How Much Security or Oversight Does the Property Need?

Having a vacation home where you can come and go as you please is undeniably convenient, but you’re still responsible for the property between visits. If it’s located in a known holiday-home area, you may need to install a security system or hire a property manger to make sure emergencies-such as burst water pipes or floods-are handled quickly.

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Where is the Nearest Hospital or Medical Facility?

Canadian cottage life tends to revolve around watersports: wakeboarding, cliff jumping, waterskiing, boating, etc. And while these aquatic pursuits are fun, they also produce their fair share of broken collarbones and bloody noses. Having a hospital nearby-especially if you have small kids or plan to retire in your vacation home-is something that should be taken into consideration.

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Does This Property do What We Need it to Do?

Take a close look at the house and property, and think through what you actually want to use it for. If you have young children or grandchildren, you may need a shallow beach rather than a dock. If you want to host extended family, make sure there are enough bedrooms and bathrooms to do so. If rental income is your main motivation, the property needs to be in a popular, easy-to-access area and provide what renters are looking for (i.e. watercrafts, nice patio furniture, a BBQ, etc.).

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Can We Use this Property Year-Round?

Having year-round access to a vacation home makes it a much more viable investment. Not only can you and your family enjoy it in every season, but it also increases your potential rental income. Buying in an area where people flock for seasonal pursuits year-round (e.g. sailing in the summer, skiing in the winter) is a smart move.

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How Fast Could we Sell the Property if we Needed to?

Purchasing a vacation home is a huge financial commitment. If something at home changes and you need to liquidate your assets, make sure you’re not stuck with a dud. Buy in an area that has a potential for resale rather than an isolated area. Is it a back lot or river/lake front lot? The cheapest lot at times is not the best investment in the long run. The premium, waterfront lots are always the most desirable and easiest to sell.