There is something innately heart-warming about the idea of a holiday home that makes many of us wish for the opportunity to own Eugene Real Estate.
The desire can be linked to specific locations where we spent time in our formative years or perhaps a favorite spot we discover during our travels.
Wherever the drive comes from, the attraction can be both romantic and sentimental. And when solid feelings and real estate are combined, it’s essential to take a step back and ensure we make decisions based on emotion but justified with logic.
In this article, we’ll run through the key points to consider whether you are thinking of buying that dream holiday home or you already own one and are trying to decide whether to keep it.
Most properties are a smart investment (long term).
When it comes to owning real estate, it’s hard to go too far wrong as long as you plan to own the property for a decent time. That way, you allow time to ride out any bumps in the market and drastically increase the likelihood that your asset appreciates over time.
But it’s not about the money…
I know what you’re thinking, buying a holiday home isn’t about making money. But if you are going to buy one, you might as well make sure it’s a decent investment. You don’t want to buy a property that ends up being a burden on future generations.
Where else could you go?
Holiday homes are inherently a trade-off. You choose reliable access to accommodation in one fixed location over a wide range of potential holiday destinations.
Once you own a holiday home in Eugene, Oregon, you feel compelled to use it. And unless you are already retired, you only have so much time off each year. If most of that time is spent at your holiday home, you are forgoing all the other experiences you could have if you were free to travel anywhere you desired.
So before you take action on the holiday home dream, it’s essential to speak to everyone involved to find common ground around what you all want for your leisure time moving forward. Do you want stability and comfort? Or variance, adventure, and possibility? New places with different cafes, bike trails, beaches, and weather.
Do the math.
Tally up the annual costs of owning your potential holiday home. You’ll have mortgage interest, maintenance, insurance, local rates, utilities, renovations, and travel costs. Now consider – if you set aside this amount of money for holidays each year, what sort of adventures could you have? Chances are, you could accumulate plenty of positive experiences if you spent anything like what you might spend each year on a holiday home.
But we can’t go anywhere right now!
In a global pandemic world, the free-wheeling travel of yesteryear could be a thing of the past. However, in our current environment, the pull of owning your very own haven near the beach (or forest, or whatever you like) is even more vital.
There’s also the potential that is owning your own holiday home makes it easier to get away, removing hurdles from the process. If you already know where you are going, all you have to do is pack up the car and drive! That might result in more time off and more quality time with loved ones moving forward.
Are you buying freedom or a burden?
For most families, unless you buy a camping spot in the middle of nowhere, owning a holiday home will end up being a yearly cashflow-negative decision. That means, each year, you will have to find the money to pay for it or risk being forced to sell. And in a down market (if we ever have one again), holiday homes are often the most challenging properties to sell.
You might be earning a high income right now. But what events do you see in your future? For example, is there any chance you will want to take time off to study, have kids, change jobs, or take a mini-retirement?
All real estate purchases reduce our financial freedom in the short term but can increase our space in a long time if we make intelligent choices.
Buying (and owning) a holiday home in any Eugene Real Estate comes down to how much weight you put on the sentimental attraction of a fixed-holiday base where life-long memories can be made versus the freedom of keeping your travel (and investment) options open.
We, The Ruiz team, loves to talk with you on Eugene Real Estate and often spend time helping our clients bounce ideas around as they mull investment choices. So if you would like to catch up for a cuppa and a chat, please contact us today!