It’s a common dream among retirees: living the life of a “snowbird.” Living the life of a snowbird is when you have another home in a place that’s warmer than where they are now. For example, maybe in Florida, Arizona, or California where they escape the winter and enjoy a few months in the sun. However, as David Hughes states in U.S. News & World Report, having a vacation home is more than an extended vacation. You need to consider whether you want to buy a place or rent one. Furthermore, determine who is going to maintain it while you’re away. Also, plan how and when the utilities will be turned on and off, and more.
Keep in mind that this is different from buying or building a place where you will move to after you retire. Your vacation home is a temporary residence that you buy or rent. You look after it as if it is a normal house. That means finding a place and getting it inspected. If you’re renting you can check it out yourself. However, if you’re purchasing find out what needs to be fixed. After closing, you can have fun decorating and furnishing it.
If you want the life of a snowbird, take a look at these three tips.
Make Sure You Can Afford It
Certified Financial Planner Dana Sippel states you do not want to move into a place you can’t afford. Do some research on available properties in the areas where you want to have a vacation home. Figure out how much it would cost per month to have it. You should factor in all utilities (including Internet, cable, or satellite costs), neighborhood or condominium association fees, property taxes, estimated repair costs for any ongoing maintenance, and property management fees.
Keep in mind that taxes and services as well as the cost of living may be more expensive in the area where you want to move. Also, figure out where you can save money. Bundling insurance with your current homeowners policy may help reduce expenses. All in all, make sure you can afford this second home before make an offer.
Make Sure You Can Get To It
Before you enter the life of a snowbird, consider whether you’re purchasing or renting the property. According to Money, the typical vacation home is about 180 miles from the primary residence. Unless you plan to cut yourself off from everyone, you’ll want your family to be able to join you. So, follow this rule: if it takes two hours to get to it, yes. If it takes two days and several plane changes, no.
Make Sure It Fits Your Lifestyle
It is essential to consider whether it actually fits into your lifestyle. If you’re used to an active social scene with a diverse group of people, will you find something like that around your vacation home? Likewise, if you actively volunteer for social agencies, a church, or events around your home, will you find the same opportunities at your second residence? According to Mike Lewis of Forbes, the average person has about 20 years of life remaining after retirement. Are you positive you’ll enjoy spending half the year in a different location? If you’re unsure, it might be best to rent a vacation home at first to see if you’ll actually like spending time there.
If you decide that a vacation home comfortably fits into your finances get your wings as a snowbird.
