Owning a dream vacation home is kind of like owning a dream boat, until you actually own one. The idea of it is so exciting that you spend hours every day looking at what’s available to buy. You imagine yourself lounging away the day with little to do but enjoy the best decision you ever made. Well, guess what – it’s not that easy when stuff happens.
There are 7.5 million second homes in the United States, and for many of those millions of homeowners, their second homes have been an escape during the COVID-19 pandemic. But during normal times, owning a second home can become a burden as much as an escape.
Anna Maria Island (and the surrounding waterfront property in Manatee County) is one of the most popular regions in the state of Florida to buy a second home. Our beautiful beaches, pristine water and island charm have been attracting people from around the world for decades. However, owning a vacation property also comes with a litany of problems, especially if yours is set up as a rental property as well.
If you’re renting your property when you’re not using it or are just having someone oversee it while you’re not there, get ready for phone calls. Broken and leaking appliances, roof leaks, mold, air and heating equipment malfunctions, termites and who knows what other critters who may decide to invade your nice, quiet home while no one is there are just a few of the potential issues. And, of course, the Florida curse of hurricane season, where for almost half a year you will hold your breath and stay glued to the Bay News 9 weather cones.
Owning a vacation property has as much to do with your financial ability as it has to do with your personality. If you like being free and exploring different and varied places around the world, going back to the same beach house every year can make you feel stifled and unimaginative.
If your personality is one where you want everything working properly all the time with nothing out of place when you arrive, better rethink your decision. No matter how hard you try, something will go wrong, whether you’re renting your property or not, so maybe you’re better off being the one who rents, keeping your stress level down.
If, however, you’re pretty easygoing and want to find a second home for your family to return to every year and create memories, then a second home will fit your personality and lifestyle better. Getting involved in the community and making friends with local shop owners and restaurant owners will not only enhance your second home experience, it will also give you someone to fall back on if you have a problem getting local repair people, landscapers and housekeepers. Make it more than just your second home, make it part of your life.
If renting your second home is part of your plan in order to offset expenses, consult with your financial and tax advisor. As we know, tax laws have changed in the last couple of years and some of that may affect your personal tax position and frequency of personal use. Unless you live near your second home, hiring a property manager to handle rentals as well as maintenance will make ownership a lot less stressful. Many homeowners successfully use websites like VRBO and Airbnb for their rentals, but that requires being more hands on than you may want to be.
So, should you buy a second home for Christmas? There is a multitude of pros and cons involving finance and personality. Be honest with yourself, because, like owning a boat, owning a second home may not be that exciting once you get off the lounge chair. Stay safe.
