Snowboarding in all that gorgeous snow in Tahoe this New Year's weekend may have provoked many of you to think about how nice it would be to own a vacation property in the mountains. The idea of owning a retreat in the forest near the lake is just a dream for many and a real possibility for a few. Maybe the prospect of owning a home at the coast to spend several weeks in the summer at the beach with the family is more your cup of tea. Warm weather hiking and biking along the rugged central coast or swimming and surfing in the waters off southern California may have more appeal. With so many vacation homes on the market these days, a dreamer has many options to consider and they are all at great prices. It could be said that the prospects for vacation home ownership have not been this good in decades.

There are so many great things about having a second home, like the ability to enjoy it whenever the spirit moves you, and the great comfort of having your own personal belongings surrounding you. The security of knowing what to expect, having comfortable bedding and your personal choice of creature comforts to use while enjoying the home are added benefits. From an investment point of view, the opportunity for rental income, future appreciation or handing the home down to your children and grandchildren as a legacy has a nice ring to it.

"This love affair will last forever!"
Now, hold on.... the idea of owning a cabin in Tahoe or a cottage at the beach is very alluring but not without many factors to consider before thinking about making your dream a reality. Vacation home ownership does not come without responsibility and pit falls, and it doesn't come cheap, no matter what the property may cost you initially.

An investor should be certain that he is ready to own the home year round and not just for one primary season of use. Remember that home ownership is home ownership whether it is for use as your primary residence or as a vacation retreat, and so the responsibilities for both are similar. A vacation home buyer must consider the regular maintenance and upkeep that will come with owning this home. This is one reason that a vacation home buyer should use caution and limit the distance between primary and secondary residences. My rule of thumb is that a second home should be no more than 3 hours away from your primary residence so that you can easily get there on weekends. This would translate to much more use. This rule does not always apply, and in 2009 the National Association of Realtors reported that 50% of vacation home buyers bought more than 500 miles away from where they lived. Other considerations, in addition to the obvious (nearby attractions, vacation lifestyle appeal) should be access to health care and shopping, especially food shopping.

"Lions and tigers and bears, oh my!"
Is the area subjected to severe weather? Are local roads plowed in the winter or will this be a 3 season home? How easy will ongoing maintenance be for the owner? Will you have to hire someone to maintain the place? Are there people around who can perform maintenance services? Are there house cleaning services nearby or available? What overall condition is this place in, considering weather patterns? How much time do I have before it needs major upgrades? Will every waking hour of the vacation really be spent fixing things? Can we expect floods, mudslides, forest fires...

When you pencil out the costs of ownership, don't forget utilities, insurance, taxes, maintenance and, if you choose to rent your property, management. Jason Brown of Stonecastle Land & Home Financial says that the requirements to purchase a second home are the same as those for a primary residence, and that the normal 20% down payment applies. Attractive rates are available.

Although the gloom and doom of the reports on our economy are weighing heavy on everyone's mind and pocket, there are many who feel that the market will eventually correct itself and there will be future appreciation, so desirability of location is important too. How easy it is to get to, can I use this year round, and will there be appeal to other vacationers (in case one wants to glean some income from it) are all important questions to ask.

Tax benefits and consequences will be important to consider if this home is to be used as a future retirement home, a rental, or a family legacy passed on through the generations.

"I'm getting this property at a bargain price"

This is such a subjective thing. A bargain is always in the mind of the beholder. No matter what the purchase price, if you really can't afford the total cost or can't spend time enjoying it, this is not the dream you should pursue. I think when someone dreams of owning a vacation property that person should find a place that takes his breath away - whether that happens because of the location's natural beauty, the property's form and function, and/or because the place will likely provide an intangible benefit in the lives of the property owner and that of the family.

My husband and I love to spend time in the mountains and at the coast. A few years ago we were dreamers. Our dream was to have a vacation retreat in the forest away from the lights and music of everyday existence in the bay area. There was a time that we thought owning a vacation home was unattainable and perhaps unattractive. We always questioned why people felt the need to own a vacation home. We had stayed in many beautiful and quite satisfactory vacation rentals throughout the state and beyond. What was the magic in owning a vacation home?

"Oh, this is the magic..."
Our dreaming started when we were enjoying the elegance of the forest in a cabin rental in Yosemite during our annual birthday celebration hiking trip. While we relaxed in deck chairs on the screened porch overlooking nature, we had an epiphany about owning a place of our own on 10 acres in the woods where we need not share the exquisite silence of the forest with 20 fraternity men and a keg of beer on the porch of a nearby cabin. How wonderful it would be if we had decent cookware and dishes to use and functional appliances less than 25 years old, really comfortable bedding, and good water pressure. A place we could call ours that we would go to on unplanned weekends with our friends and family. A place we could pass on as a legacy to our children and grandchildren.

In 2008, after a very long and selective search, we completed the construction of our cabin in the woods. Our little piece of heaven is on 7+ acres of nature with no light pollution and no noise pollution except for the occasional sound of someone felling a Doug Fir. The decision to pursue the dream of owning a vacation home started one of the most exciting and satisfying journeys in our lives. We spend a lot of time there, as much as we can, alone or with family and friends. We have no regrets, no reservations about the investment. Of course our home is not worth what it was a year or two ago, but we didn't buy it to sell and turn a profit. We bought it to enjoy.

This leads me to conclude that although vacation home ownership is certainly not for everyone, if a dreamer comes upon the opportunity, has the resources to afford it, and has realistic expectations regarding its' use and rewards, owning a vacation home is a wonderful thing. Whether it is a cabin or a cottage you are considering, let me know if I can help you achieve your dream.