3 questions to ask yourself before buying a vacation home

Are you considering buying a vacation home to spend your summers or weekends? Whether you want to buy a cabin a few hours away or a villa in the south of Spain, here are a few questions to ask yourself before taking the plunge.

1. How much will it cost?
On top of the mortgage and down payment, you must factor in expenses like property taxes, insurance, utilities, and maintenance fees. You should also budget for future renovations and upgrades.

2. Can you afford it?
As a rule of thumb, your mortgage payments and other forms of debt should account for less than 36 percent of your monthly gross income. If you think buying a vacation home will put you over this threshold, it may not be the right time to invest.

3. How will you use it?
Deciding whether the property will be used exclusively as a second home or a rental property is essential. This will determine, among other things, where the house is located and how big it needs to be.

Contact a real estate agent in your area to start house hunting today.