Can you imagine having a comfortable summer cabin where to escape from everyday life stress? That would be that nice, isn’t it?
Yes, but with a summer cabin, not everything is enjoyable. You must consider the responsibilities and maintenance that home-ownership implies. You’ll need a roof replacement, new windows, to buy insurance…
Depending on several factors, a cabin can be a good investment. But, it’s important to know the pros and cons of buying a cabin.
So, let’s discover the ins and outs of owning a summer cabin, cottage, or condo.
• Pro: You have your own vacation place.
What’s better after a hard week than escaping to a charming location?
Forget renting! Just pack up, take your car, and go to your summer cabin. It will be waiting for you with everything you need to rest and enjoy your three-day weekends.
• Con: Maintenance can get expensive.
Maintenance is one of the most challenging sides of owning a summer cabin.
You don’t want to start your summer vacation finding an ants' invasion in your kitchen. You can use your cabin only a few times a year, however, you have to keep up with repairs.
Weather elements, pests, and even uninvited guests are permanent threatens to your cabin. Likewise, vacation homes near beaches are exposed to seasonally extreme weather, from hurricanes to snowstorms.
These factors can affect critical house systems like siding, roofing, windows, and more. Thus, if you want to buy a cabin, get help from local contractors to ensure your property doesn’t have vulnerabilities. That includes potential roof issues. Besides, ensure your door and windows are strong and secure against thieves.
Tip: At least once a year, plan and perform an inspection of your cabin through a local, reliable contractor. This way, you can detect and address timely any issue. Besides, you’ll have somebody to call in case of an emergency. Don’t forget to budget updates or repairs on items like the roof or windows.
• Pro: A summer cabin or vacation home is a clever source of income.
Some people buy a cabin or a vacation home with side-purposes such as:
- An investment property: you can rent the cabin when you’re not using it. So, you can have an additional income while you’re at work. According to the National Association of Realtors, purchases of vacation rentals are historically high.
-A future home: would you like to live in that summer cabin someday? You can plan to move to your second property in the future. Have in mind that vacation homes in popular destinations tend to appreciate over time.
Therefore, a second home can be a potential short-term income-earner or a long-term investment.
• Con: Tax rules can be tricky to navigate.
Beware of the tax rules that apply to rentals!
Depending on how often you rent and use your property, you may have tax responsibilities to face. In this sense, consider what Andrew Beattie of Investopedia.com wrote:
“As of 2010, if you currently own a second home for personal use, you are allowed to rent it to another party for up to two weeks (14 nights) without reporting any of the income,”
“A second home is considered an investment property if you spend less than two weeks in it and then attempt to rent it the rest of the time.”
It is a good idea to hire a real estate agent experienced in second-home purchases. Also, the help of an accountant that guides you through the tax details related to vacation and investment properties is important.
Are you looking to advertise your cabin for short-term rentals? You can resort to rental sites like Airbnb and Home Away. Additionally, you can hire a local management firm to handle rentals on your vacation home. However, it is a more expensive alternative.
For more than a decade, the Roof Crafters family has served the home improvement needs of families. If you look for new windows or a new roof, you only need to call Roof Crafters at 225-667-1189 or visit Mississippi landsource or our partner, Doug Rushing Realty online.
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