Tips for Boomers Considering a Vacation Home

(NC) – After years in the workforce, you’ve earned more vacation time – do you notice a trend in how you’re spending it? Do you head south in the winter for weeks at a time? Or take an extra day most weekends to relax at the lake? During retirement, you won’t have daily commitments that require you to stay at your primary residence. If you think you will be spending even more time at a favourite vacation spot, it might make sense to buy a home there.

“If you’re considering purchasing a vacation property, it’s important to think about how you will finance your new property and how it will fit into your lifestyle,” says Farhaneh Haque, regional sales manager of mobile mortgage specialists at TD Canada Trust.

Below are a few things to consider before purchasing a vacation home:

Downsizing: Depending on the value of your current home and how much equity you have built up in it, selling your current home and moving to a smaller one may free up funds to put towards your vacation property. If you plan to spend a lot of time at your vacation property, a smaller home that requires less maintenance can be a good idea.

*Financing: *Consider leveraging the equity you’ve built up in your current home to help you afford your vacation home. A Home Equity Line of Credit (HELOC) on your existing home could help you afford your vacation home without requiring you to take out a mortgage on it.

Other costs: In addition to the typical costs of any property purchase (taxes, transfer fees, etc.), there are considerations unique to vacation homes. For instance, you may need to pay someone to maintain the property while you aren’t there.

More information on buying a second property, or downsizing your current one can be found online www.tdcanadatrust.com.

Support Our Sponsors