Many new home buyers in Vermont are second home buyers, buying a vacation home. Vermont seasons have something for everyone…terrific skiing in the winter, perfect maple syrup making weather in the spring, warm days and cooler mountain evenings in the summer, and gorgeous foliage in the fall.
Purchasing a Vermont vacation home is an exciting venture, but there are some things to think about that are different than when you purchased your primary residence.
1. What is the travel time between your primary home and the second home location? Is it a doable drive or travel distance, or will it become a deterrent to actually enjoying your vacation home?
2. What type of activities does the vacation home location offer and are these activities of interest to you? It is a good idea to visit the vacation home location at various times of the year to get a better idea of what the area is really like.
3. If you are financing your vacation home, interest rates are generally higher and down payments larger. I am glad to put you in touch with a local lender for you to talk loans with.
4. The interest paid on the mortgage for your vacation home is tax deductible, if you don’t rent it out for more than two weeks a year. But unlike your primary residence, the profit you make from the sale of the property is subject to capital gains. One way around capital gains is to sell your primary residence, move into your vacation home and live there for two years before you sell it.
5. Insurance is another consideration. Homeowners insurance in a vacation home is usually higher than on your primary residence because it is vacant for much of the time.
One of the best recommendations I have for you is to get the assistance of a well qualified Realtor who knows the area who has lived in the area for awhile. If you are thinking of buying southern Vermont vacation home, I’m your Realtor!! Give me a call at 800-659-1819 # 103 or visit my website. I am a long time resident of Vermont and a long time Realtor. I’d love to help you buy your dream Vermont vacation home!
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