Many people feel that owning a vacation home is out of their reach. That a vacation home is just a luxury reserved for the super wealthy or as part of an inheritance. But the fact is, there are many ways to pay for a vacation home you may not have thought of. In fact, there has been a huge increase in the number of people buying second homes in the last few years. This is probably because of the low interest rates and strong housing market available today. In fact, there has never been a better time to invest. So, If owning your own vacation home is something you’ve ever wanted, check out some of these ways you can easily make it a reality.
Mortgage your home
Instead of trying to qualify for a second home loan, a mortgage on your primary residence may be a better option. The reason for this is that taking out a loan on a vacation home usually requires a larger down payment. It also sometimes comes with higher interest rates. But you might get a better deal using a second mortgage, cash-out refinance, or home equity loan.
Another good option is a reverse mortgage. If you are over the age of 62 and have a lot of equity in your primary residence, you may be eligible for reverse mortgage. This is a way to get the bank to pay you monthly installments for your home as long as you live there. It is basically taking out a loan on your home that is paid monthly instead of in one lump sum. And it often saves you thousands in interest. Your lender will help you calculate your reverse mortgage benefits to see if this is the best choice for you.
Team up with friends
If you’d rather pay a small sum upfront for a vacation home, why not team up with other couples who have the same dream? You can set it up on a calendar like a timeshare so that you each have your time set aside there. Or you can simply agree to check in with one another when you think you’d like to go. This can be a very amicable agreement as long as everyone does their part.
Rent it out
The new trend for vacationing is finding properties on sites like Airbnb and VRBO. These sites allow you to list a home or a spare room for rent for amounts and dates you specify. Depending on how much you’re able to charge, you could even end up profiting from the venture. One example of someone likely making a profit is a loft apartment in Soho that rents for $1,450 a night. But even if you own a lake cabin you can rent for $200 a night while you’re not using it, chances are you can at least pay the mortgage on it.
Another way to rent your property out to pay for it is by simply renting it out as a residence. This may seem like it defeats the purpose. But consider renting it out for a few years when you first purchase it to pay the mortgage. Or if you want to enjoy it sooner, just lease it out for a year to help cover a portion of what you paid. Just be careful who you allow to live in your home by finding a good tenant screening service ahead of time.
Workamping is a relatively new term that typically applies to RVers who pick up work on the road, but that doesn’t mean you can’t do some form of it while on vacation. There are many sites that list temporary jobs in remote areas that pay decent wages. Some pay by offering room and board. You can keep your eye out for the ones that offer a paycheck. Some examples might be maintenance at a nearby campground, or you might find a job cooking for a church camp for a few weeks. You might even be able to ask around for mowing jobs in the vicinity of your vacation home while you’re there. The possibilities are endless!
Vacation homes are not exclusive to the super wealthy. Keep these tips in mind and you’ll be able to enjoy your very own vacation home in the spot of your choosing.