Buying a house in a vacation area can be extremely exciting! What's better than being able to flee to a resort area at a moments notice, without having to make rental plans, or any other accommodations. You'll have the luxury of picking up and going whenever you'd like to. Perhaps you plan to live there all year, and use it as your primary residence. Whether you plan to live there part or full time, it can be a real pleasure. However, what you should realize is that this isn't going to be a cheap deal.
It shouldn't come as a shock that homes in resort areas sell for a lot of money. The price will of course, depend on where exactly it is, how big it is, and how nice it is. Depending on what type of view the property has, the value could be way, way higher. Resort homes are usually located in the best places in the world. Because of this, you can expect to pay top dollar to buy in one of these areas. Usually, people opt for homes in the mountains, or on the beach. The closer to those actual areas that you are, the more you'll be spending.
Don't forget to budget for more than just the cost of the house. You're also going to have to pay closing costs, as well as loan fees, the mortgage, utilities, inspections, and taxes. These things can get very complicated, which is why you'll need to consult a real estate professional.
This is the time to look very closely at your finances. You’ll certainly need to budget for a monthly mortgage payment. Keep in mind that mortgage rates are always higher for second homes, than they are for primary residences. There are reasons for this, and while it may seem unfair, it's reality.
The reason is that a second house is considered an investment. One very real expense to factor in is maintenance. You will have to pay for maintenance all year, whether you are there or not. For example, if you buy a house in the mountains, you'll have to have the hot water running during severe cold weather conditions. You can't only turn on the water utility when you're there. That's just one tiny example. Know that property taxes don't come cheap either; they'll probably be a large chunk of your costs. Be sure to budget accordingly.