Buying a vacation home is a luxury that many wish to accomplish in their lifetime. While the options are endless, including destination, size, style, and the like, it’s important to take your time and find what you really desire and need. Therefore, we have compiled a list that will help you navigate the process and ensure you end up with your dream vacation home. More importantly, however, is securing your large investment with a comprehensive NJ Vacation Home Insurance policy.
Match your vacation home to your lifestyle.
Choose a home that fits your lifestyle- take into consideration the space it will provide, where it will be located, the surrounding amenities, etc. Further, bear in mind that you don’t need to own a primary residence in order to buy a vacation home. In fact, the tax implications are about the same between buying one property and renting another.
Identify how you’ll use your vacation home.
Whether you choose to stay there full-time or use it as an investment property, understand the tax implications of each. If you rent your home for more than 20 days per year, you must report the income to the IRS each year. However, it will earn you extra income and allow a place to hang your hat when you want a break from reality.
Take all the costs into consideration.
A second mortgage, taxes, maintenance, upkeep, and utilities on a vacation home add up quickly. Keep these in mind when creating your budget for buying your vacation home.
Use a specialized realtor.
According to Zillow, buying a vacation home typically means buying in an exclusive or specialized market. Therefore, ensure you enlist the help of a local real estate agent who knows the market inside and out to get you the best home at the best price.
At Tri-State Insurance Agency, we are committed to protecting homeowners against the broad spectrum of perils they face. Whether it is your full-time residence or vacation spot, our high-value homeowner’s insurance is custom written to meet your specific needs and offers higher coverage limits and inclusions that traditional policies. For more information, contact us today at (888) 990-0526.