September 9, 2014 by Leave a comment

Having a second home to vacation in or just get away for a while can be a great investment. However, this isn’t always feasible from a financial standpoint in today’s economy. Fortunately, there are three ways to make a second home more affordable and squeeze it into your budget.

1) Team Up with Friends or Family to Buy a Vacation Home

While coming up with the money on your own may not be in the cards, it’s often possible when you go in with friends or family. Dividing the cost of a home between multiple people will take the financial strain off of you and make the idea of a vacation home much more realistic. Before shopping for a property, it’s smart to get everyone together and go over the details so that you all agree on a price range, location, amenities, etc.

To prevent complications from arising, it’s also important to make sure that everyone is on the same page before making a purchase. For instance, you might want to divvy up the time and create a schedule throughout the year for when each person or persons will use the home.

2) Buy a Foreclosed Property

According to Statistic Brain, the number of home foreclosures in 2013 was 1,369,405. While this was down considerably from the previous six years where the foreclosure rate was abnormally high due to the Great Recession, it’s still much higher than it was a decade ago. With a little research and effort, you can find affordable foreclosures where you can easily find discounts of 30 percent or more.

In many cases, beautiful homes that may have previously been out of your price range are now financially feasible. The great thing is that there are properties all over the U.S. that are just waiting to be purchased. A list from Business Insider highlights some of the top beach towns where foreclosures are readily available, the sale price and discount from the original price.

3) Rent Through a Property Listing Site

Another option is to simply rent a vacation home temporarily through sites like HomeAway and Vacation Rentals By Owner. This is a good option if you don’t want to make a long-term investment or you want to vacation in a variety of locations. These sites work by property owners first listing their homes by location, cost, dates available and amenities. You then search through listings to find what you’re looking for.

It’s set up so you can see pictures, amenities offered, reviews and exactly where a property is located on a map. You can also contact the owner directly to ask specific questions and get any other information you need. Finally, you simply book it and you’re ready to go. By going with one of these options, it should be possible to either buy or rent the perfect second home. At the same time, you won’t have to spend beyond your means and can “right size” your purchase.

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