Having a vacation home is a dream for many families. If you play your cards right, it can be surprisingly accessible. Before moving forward, be sure to check your credit. If your credit score is good, get your paperwork prepared, and find out if you qualify for a mortgage or loan. Shop around for the best rates. If your credit or financing needs improvement, wait until a better time. If your credit and financing is secure, move forward. Use your money wisely, and go cabin hunting off season to obtain the best rates. Be prepared to cover not only the initial cost of the vacation home or family cabin, but also the unexpected costs associated with it.
Use Your Second Home as a Source of Revenue
Most likely, there will be short or long stretches of time when you will not be using the family cabin. Consider renting it out to use it as a source of revenue. If you choose this option however, be sure to check guidelines with the IRS to determine at what point you would be considered a landlord for tax purposes. If you move ahead with renting your cabin, bank this extra revenue money, and use it only in the instance of unexpected costs. Make sure you are insured to cover any damages that may happen to the cabin while renting it out.
Set Up an Emergency Fund
If you are not comfortable with the idea of renting out your family cabin, think of other ways to bolster enough money in an emergency fund. Do not touch this fund in any instance other than unexpected repairs. Use payroll deduction as a way to add to this fund without manually doing so. Start with small deductions, and you will barely notice the difference in your paycheck. If you have a lot of family visiting the cabin from time to time, ask them for some donations to keep up with maintenance costs and the emergency fund.
Save on Everyday Items
When it comes to furnishing your cabin, save some money by buying decorations and furniture at consignment stores for a discount. Buy things you can in bulk like dish soap, laundry detergent, and sheets. Itf your cabin is a bit more rustic, have everyone who visits provide their own bedding when they arrive. This can save you a lot of money and energy in the long run.
Apply For a Short Term Loan
If you decide not to rent out your space, and you do not have an emergency fund in place, consider using short term loans when unexpected costs arise. With this kind of extra cash, you can easily get started choosing the cabin and moving in. It is easy to get these short term loans when you need them and with little hassle to you.
Everyone benefits from a vacation, and a break from the stresses of day to day life. Purchasing a family cabin is a wonderful investment. Just be sure to do your research and to be prepared for the unexpected. Doing so will allow you to fully relax and enjoy your getaway home.