Although buying a vacation home is a common financial goal, many find that the hassles outweigh the benefits. The pandemic has created a shift in how we see the value of properties, as well as vacations. We’ve put together three reasons why a vacation home might be a long-term life value addition.
Going to the same house every year at vacation time can get old. Paying two sets of home bills – including two mortgages – can get really old. And you might feel guilty about spending money on trips to other locales when that vacation home is just sitting there, waiting.
However, the pandemic has cast owning a second property in a whole new light, especially if you’re self-employed or a business owner. Here are three reasons why that lake house or beachfront condo might give you a greater Return on Life in the future.
1. You can work from your (vacation) home.
It’s likely that the Work From Home (WFM) movement popularized by millennials is going to become a permanent fixture of how many companies do business. WFH can have some major benefits, like setting your own schedule, working at your own pace, and spending more time with your family.
On the other hand, some folks are finding that WFH causes boundary problems, especially if the H doesn’t have a dedicated office for the W.
Whether you need a change of scenery or just a couple hours to yourself, your vacation home could become your new part-time office. Working from your vacation house could create new opportunities to broaden your customer base. A more inspiring work environment could also lead you to a big business breakthrough. And business owners might be able to wrangle some tax advantages from using a second home that isn’t your primary residence as an office space.
2. You can put your vacation home to work.
Another common bother that turns many folks off owning their vacation home is … owning another home. In addition to paying the bills, basic upkeep like landscaping and home repairs can turn that dream vacation destination into a beach bummer.
However, nagging issues like keeping the grass cut or calling up a plumber might not bother you as much if you’re spending more time at your vacation house. Plus, if a part-time job is compatible with your work schedule, your temperament, your tax bracket, and your homeowner’s insurance, you might enjoy being a landlord. Covid-19 has created a rising demand for smaller getaway vacations at houses where families can maintain their household bubbles. Instead of racking up bills while you’re away, your vacation home could be padding your nest egg.
3. You can travel safer.
Of course, if your family’s other travel plans have been disrupted by Covid-19, maybe you’ll just start using your vacation house for more of your own vacationing. Get back in touch with the things that made you fall in love with this second home in the first place, whether it’s the small-town ambiance, local golf courses, or fishing just outside your back porch. A workday stuffed with Zoom calls and Slack chats is going to be less of a headache if you can clear your head with a stroll along the beach after lunch.
Plus, you can use your vacation home as a hub to make extended travel safer and less stressful. Instead of fretting about getting your kids in and out of a gas station restroom, plot your road trip around a stop at your cabin. After a couple nights in the safety of your home away from home, you might have a whole new selection of convenient day trip options at your disposal.
How Mission Wealth Can Help
Buying a home is one of the most significant $Lifeline transitions that we help our clients prepare for. Buying or selling a second home adds a whole extra layer of complexity to your financial planning. If Covid-19 has given you a new perspective on owning a vacation home, let’s have a conversation soon. We’re happy to coordinate the important details with your tax advisor, insurance agent, and other key professionals so that all your assets keep providing the best possible life for you and your family.