Congratulations! You’ve worked hard and now have the financial means to buy a vacation home. But before making your move, there are several things to consider.

The prospect of owning a vacation home in your favorite vacation spot is exciting. But, like all major purchases, it’s not a decision to take lightly. Let’s look at 10 things to consider to make the dream of owning a vacation home a happy reality.

1. Are you making a purely emotional decision?
   Maybe you’ve just come back from a wonderful vacation and want to purchase a home in the area you visited. If you’re swayed by emotions without thinking it through, you might regret your decision later and it could end up costing you money.

2. Can you afford a vacation home?
   To determine if a vacation home fits in your budget, take a look at your budget and figure out what impact this purchase will have on your savings. You’ll also want to think about the down payment and closing costs, and a new home loan (if you’re getting one). Other expenses that can add up fast are property taxes, homeowners insurance, and any maintenance costs. Will you have monthly homeowners association (HOA) fees? If so, you’ll want to speak to the association about past special assessments and if they anticipate any additional future fees.

3. What are you giving up if you buy a vacation home?
   Think about how your budget will be impacted moving forward. Then consider what adjustments you might need to make to your current lifestyle. If you buy a vacation home, will you save less for retirement, forgo luxury items or vacations to other places, or postpone buying new cars? How will owning the home affect your ability to maintain and improve your primary residence or buy gifts for your children or grandchildren? These are all important questions to ask yourself.

4. How long will you stay in your vacation home?
   Think about how often you will actually use your vacation home. Do you plan to spend a few weeks, a few months, or more than half the year there? If you are staying at your vacation home for a couple of months or less, you might want to consider turning it into a long-term rental to help offset some of your costs. Just remember that renting out property can be complicated and vetting potential renters is key to avoiding potential problems and unexpected expenses. If you plan to stay more than six months at your second home, it may be considered your permanent residence. Think about how you might be affected by taxes in that situation.

5. What will you do with your vacation home when you aren’t there?
   You’ll want to make sure your vacation property is secure while you’re not there. You’ll also need to consider who will maintain it. If you plan to rent out the home, it’s essential to find out about the local rules and regulations for rental properties. If your home is out of the country, managing it from far away can be especially challenging.

6. Do you want to stay at the same place in the same location?
   You may have found the perfect spot for your home away from home, but will you want to vacation there every year? What if you eventually want to explore different locales? Think about how a vacation home might limit your future travel options and how you’ll feel being locked into one place.

7. How easy is it to travel to your vacation home from where you currently live?
   Will your vacation property be close enough to comfortably drive to for a weekend getaway? If your vacation home is farther away, is driving there still an option? If getting to your vacation home requires air travel, think about what type of flights are available and how that expense will affect your budget. Can you get a direct flight? Will you have a layover? You’ll also want to consider how far your vacation home is from the airport.

8. As you get older, will your vacation home continue to serve your needs?
   Location, as they say, is everything. Is your vacation home close to shopping, entertainment, healthcare, and other essentials? Or will you need to drive a long way to access these services? You’ll also want to think about how the property is laid out. Is the home easily accessible? Are there a lot of steps to climb and are bathrooms handicapped accessible?

9. Will your family visit you at your vacation home?
   Enjoying a vacation home with family can be an enriching experience. If you plan to have your family visit, be sure to discuss it with them first to make sure everyone is on the same page. When looking at a vacation home, you’ll want to consider if you have enough space to accommodate family members comfortably. If your family won’t be able to visit or stay with you, will you be lonely without them?

10. Is your vacation home a good investment and is now the right time to buy?
    This may be a hard question to answer as it requires taking a guess on what the future may hold. You can look at what homes in the neighborhood have sold for in the past and see pricing trends in the area. Is it a buyer’s market or a seller’s market? Are home prices projected to rise, or could you be buying at the top of the market? Will there be more inventory to choose from or better prices if you wait to buy? You want all the facts so you can make an informed decision.

Buying a vacation home is a major life decision, and you’ll want to think about it very carefully to avoid costly mistakes. If you’ve weighed all the facts and are ready to buy, make sure that you visit the actual property several times and stay in the vicinity during the season you anticipate being there before purchasing it. You never want to buy a house sight unseen. For more information and help with purchasing a vacation home, contact your financial institution.