If you recently retired and you have a sizable home fund saved up, you may have been thinking about purchasing a luxury home for your future vacations. Even if you’ve been saving for your dream vacation home in Prescott your entire life, it’s still best to learn more about the home-buying process before getting started. These five essential insights from Tri-City Pro Referral Service could prove helpful when looking for a vacation home.

Calculate How Much You Can Afford Before Beginning To Browse

Perhaps the most important first step to take is to determine how much you can actually afford to spend on your new vacation home. This step can help you continue to live comfortably on a fixed income and avoid feeling tempted to purchase a home beyond your realistic financial limits.

Take your retirement income into consideration. Additionally, the amount of money you have saved for a down payment can make a difference, as can the typical amount you need to spend on bills each month.

Research Mortgage Approval, Insurance, and Home Purchasing First

According to one study, millions of Americans have resorted to risky methods of home financing to purchase houses. Unfortunately, this tactic can make losing your home more likely. Instead, read up on the basics of the home-buying process. For instance, learn about:

Consider Earning Money by Renting Out Your New Vacation Home

If your heart is set on a vacation home in Prescott, but purchasing one might stretch your budget uncomfortably thin, you could consider turning the home into a luxury rental property. Deciding to rent the house for even part of the year could supplement your retirement income and help you pay the mortgage on the home.

In order to protect your assets and yourself from potential litigation if you do choose to become a landlord, you may want to establish a formal LLC, or limited liability company, for your vacation home rental company. To do this, you can simply hire a lawyer, or opt for the considerably cheaper use of a formation service.

Create a Property Maintenance Plan

Maintaining a second vacation home in Prescott can be more work than you may have anticipated. To avoid potential problems, it’s best to make a property maintenance plan ahead of time. If you plan to visit with a spouse or partner, consider deciding how you’ll split up chores. Make sure you’ve planned to handle maintenance and upkeep tasks such as:

  • Pulling the weeds in the rock-scape and raking leaves or pine needles
  • Inspecting utilities and appliances
  • Vacuuming, dusting, disinfecting, and decluttering the interior

If you need help with your landscaping, check our our sister company, Tri City Earthworks and Labor.

Rent First for a Location Trial Run

Finally, don’t forget about the importance of the vacation home’s location! Depending on whether you want to go on occasion or settle down there for much of the year, you may want to give the area a trial run. Before deciding on a location, it may be helpful to:

  • Rent for a while
  • Stay with friends in the area
  • Visit Prescott in all 4 seasons

One Last Thought about Buying a Vacation Home in Prescott

As a retiree, you may have saved up your whole life to be able to purchase the vacation home of your dreams. Before you start shopping and commit to a home purchase, however, it’s best to be prepared. With these five key insights in your back pocket, you can navigate the Prescott vacation home shopping process with confidence and ease.

For your home improvement and renovation needs, contact Tri-City Pro Referral Service today!