Q: Is it advisable to buy a vacation home while still on vacation?
If you’re fortunate enough to be able to afford buying a home in New York City or New Jersey, chances are you might have the funds needed to take a nice vacation once in a while. It’s probably not a stretch to say that while you’re away having the time of your life, you might discuss buying a vacation home in that idyllic location. On impulse, you might even see a real estate broker before you return home.
New York and New Jersey real estate attorneys often hear from clients who just enjoyed a wonderful vacation and – high off the amazing experience – impulsively want to buy a second home at the vacation destination.
Making a major real estate decision when you’re on vacation is a bad idea. At a minimum, those considering buying a second home based on having a great week at the location need to step back and carefully consider the potential long-term consequences:
- you probably won’t get there as often as you think;
- when you do get there, you’ll be spending time on repairs and maintenance instead of fun;
- the mortgage, property taxes, and maintenance and overall costs are always more than you anticipate;
- if it’s an investment property, tenants will want to go at the peak times you would;
- if it’s not being rented, is it worth the carrying costs for the amount of time you’ll use it;
- going to the same place every vacation will get boring;
- it’s fun now, but will this vacation home suit your family’s future lifestyle;
- will it be as enjoyable without maid- or room-service and when you have to grocery shop, cook and clean;
- will you be in trouble if the real estate value does not increase on the investment?
This isn’t meant to discourage you. Buying a vacation home can be a wonderful thing and a smart investment as long as you give serious consideration to the above factors—and see a skilled real estate attorney—before signing that contract.
Contact Merlino & Gonzalez Today
If you are thinking about buying or selling a vacation home, the attorneys at Merlino & Gonzalez can help you. Contact us today to schedule a consultation.
From our offices in Staten Island, New York, and East Brunswick, New Jersey, we represent clients in both states in all aspects of real estate law.