Can You Live in a Vacation Home?

By Michael Ferguson

Are you considering buying a vacation home? One of the questions you might be asking yourself is whether it’s possible to live in it full-time. The answer is yes, but there are some things to consider before making the move.

Location, Location, Location
The first thing to consider is location. If your vacation home is in a remote area or a tourist destination, it may not be suitable for year-round living.

Consider factors such as access to basic amenities like healthcare facilities, schools, and grocery stores. Additionally, if the area experiences harsh weather conditions during certain seasons, living there permanently may not be feasible.

Pro Tip: Research the area’s climate and weather patterns throughout the year before making any decisions.

Property Management
If you plan on living in your vacation home full-time, you’ll need to ensure that it’s well-maintained throughout the year. This includes regular upkeep of both the interior and exterior of the property. Depending on how far away you live from your second home, this may be difficult to manage on your own.

Pro Tip: Consider hiring a property management company to take care of any necessary maintenance and upkeep while you’re away.

Tax Implications
Living in a vacation home full-time can have tax implications depending on where you live. For example, in some states, living in a second home for more than six months out of the year can result in higher property taxes. Additionally, if you rent out your vacation home to others when you’re not using it yourself, there are tax implications associated with rental income that need to be taken into account.

Pro Tip: Consult with a tax professional before making any decisions about living in a vacation home full-time.

Mortgage and Insurance
If you plan on financing your vacation home with a mortgage, keep in mind that lenders may have different requirements for primary residences versus secondary homes. Additionally, insurance coverage for a vacation home may differ from that of a primary residence.

Pro Tip: Work with a lender and insurance provider who are experienced in dealing with vacation homes to ensure you have the right coverage.

The Bottom Line
Living in a vacation home full-time is possible, but it requires careful consideration of factors such as location, property management, tax implications, mortgage and insurance requirements. Before making any decisions, do your research and consult with professionals who can help guide you through the process.

Benefits of Living in a Vacation Home

While there are certainly challenges to living in a vacation home full-time, there are also some unique benefits:

  • Reduced stress: Many vacation homes are located in areas that offer natural beauty and tranquility. Living in such an environment can help reduce stress levels.
  • Lower cost of living: Depending on where your vacation home is located, the cost of living may be lower than it is in your primary residence.
  • New experiences: Living in a different environment can provide new experiences and opportunities to explore different cultures and ways of life.

The Verdict

Living in a vacation home full-time is possible but requires careful consideration of various factors. While there are certainly challenges associated with this lifestyle choice, there are also unique benefits that should be taken into account. Ultimately, whether or not living in a vacation home full-time is right for you depends on your individual circumstances and preferences.