10 Reasons Why You’ll Never Need a Vacation Home

These days, it seems like everybody dreams of buying a vacation home. The thought of owning a second house, designed especially for getaways and family breaks, fulfills all of those desires we have not just to be successful, but also to grow materially. It is a way to build, or to continue building, even when we are nearing retirement and our children have left the nest.

However, there are many downsides to investing in a vacation home. They are not regularly discussed, because the idea of owning a house in the sun is so enduring that it can blind many families to the reality of the situation. For example, what about all of the extra maintenance and work involved with keeping a vacation home safe and secure?

It is also worth thinking about how most people afford to keep second homes. It is very common for property owners to have to rent out their vacation homes, during the peak points of the summer, so that they can keep up with mortgage payments. If this is case, you might not even be able to use your holiday home at the most suitable times of the year.

These are issues which are worth considering, particularly if you are thinking about investing in a vacation home. While there are plenty of benefits and lots of people are very happy with the decision, it can end up causing unnecessary financial stress.

This in depth guide to buying a second home will explore some of the reasons why an alternative solution could be a better choice for your family.

It’s a Lot of Extra Work

You should always remember that you cannot simply buy a vacation home and lavish it with attention when it feels most convenient. The maintenance and care involved with keeping it safe and clean is a year round job, even if you are not on site to direct the work.

In fact, this can make it much harder, because holiday home owners usually rely on services which are geographically very distant to them. The most extreme example of this is vacation properties overseas. While it is certainly not impossible to keep a foreign property clean, secure, safe, and in tip top condition, directing services from afar is not easy.

Security is a Tricky Issue

The issue of security is one which is very important. Like cleaning services, if your holiday home is not in the same state or even the same country as your first property, you will have to direct security measures from afar. If the house is damaged or breached in any way, you won’t be able to respond directly.

This can be a really frustrating aspect of holiday home ownership. Without being able to visit at will, securing a property is tricky. In the event that something goes wrong (fire, theft, vandalism, etc.), you may have to travel a long distance to deal with the situation and protect your property.

It Ties You Down to One Location

Also, while the popularity of vacation homes is still fairly high, lots of families are now turning to alternative options. They are doing so because they don’t want to be tied down to one location. These days, people travel extensively. They want to explore and have adventures.

Owning a second holiday home is perhaps not the best way to do this, because it means that families have to keep returning to the same destination, year on year. Over time, most people get bored of this and they end up selling their second property and taking trips in a wider variety of locations.

Rental Options are Affordable

On the other hand, you have the desire to enjoy private holidays, away from scores of other tourists and holidaymakers. This is something that older people really enjoy and it is one of the reasons why holiday home investments are so popular. However, the reality is that renting can be a much more satisfying option.

Why saddle yourself with a second mortgage and another property to maintain, when you could let somebody else do all the work and pay to stay in their home instead? There are thousands of increasing value holiday homes available for rent all across America, Europe and the rest of the world. The rates are extremely affordable these days, because companies like AirBnB have made renting fashionable again.

Timeshares Can Be Valuable

For older people, particularly those nearing retirement (or already retired), there are some obvious benefits to owning a vacation home. You get all of the space that you need. You don’t have to contend with noise and chaos from other guests. You get the chance to jet off for some sun whenever you need a restorative holiday.

However, as we already discussed, the amount of work involved in maintaining a second home is not really suitable for more retired people. It could be a better option to consider investment in a timeshare. That way, you get to enjoy all of the benefits outlined above, but the work and financial burden is shared with a small number of fellow owners.

They are Not Always Available

Speaking of financial pressures; most holiday home owners cannot afford to buy their property outright. The majority take out a second mortgage to pay for it. They then rent out their second home to tourists and holidaymakers, during the peak seasons of the year. This is a really effective and popular method of keeping up with the payments on a second home.

The downside to this (and it is quite a big one) is that you won’t get to choose when you use your property. If you need to rent it out to pay the bills, you’ll have to settle for spending time there out of season. In other words, all of those times that people start to dream about jetting off and spending time in the sun will be off limits to you.

A Second Mortgage is a Burden

The question is, do you really want to take on such a huge financial burden, particularly if you are nearing retirement? With all of the alternative options available, is it worth taking out a second mortgage or using your life savings to invest in something that you don’t really need?

For lots of older people, renting or joining a timeshare is a much better option. It provides many of the same benefits, but it also leaves a reasonable degree of freedom. It doesn’t make much sense to work for fifty years and then not have the money or the time to enjoy retirement.

Maturity Requires Adjustment

If you are older and considering investment in a vacation home, think about how it could potentially impact your ability to adapt in future. The most obvious example, especially for retirees, is the unexpected death of a spouse. It is common for couples to buy holiday homes and then for life to throw them a tragic curveball.

There are few things as difficult as having to maintain and care for a home that was bought to represent a family if that family changes. Most bereaves spouses do end up selling their holiday homes, because their feelings towards them change. This is a difficult and lengthy process at the best of times, so one can only imagine how tricky it is in the wake of a loss.

Buying Overseas is Tough

Buying a vacation home is just like buying any property. You need to make a good choice or the value of your investment will drop. There is also risk involved in playing the property game and you could end up with a home that does not increase in value sufficiently enough to offset the initial costs. It will then be very difficult to sell the property if you want to relocate.

Investing overseas is particularly tough, because language barriers can make paperwork a real nightmare. Also, most countries demand that foreign investors hire local agents and guides to oversee the transaction. This can make buying a holiday home abroad even more expensive than first expected.

Your Needs Will Change

But perhaps the most convincing reason not to invest in a holiday home is simply the fact that you will change. Vacations are not like everyday life; they represent a chance to do something different. If you tie yourself down to one location or destination, you could start to feel stifled.

Embrace your inner explorer and don’t be afraid to chase big adventures, even if they don’t involve investing in more bricks and mortar. Consider the alternatives, weigh up your options, and do the right thing for you and your family. While vacation homes can be a great choice for some, it is healthy to recognise that all families are unique.