After enduring two months of cold weather and gloomy skies, relaxing on warm, sun-kissed beaches or hitting the slopes is certainly a welcome idea for most. While enjoying time well-spent in a beautiful location with friends and family, many of us often have the same thought: “I wish I owned a place like this!”

Buying a second home may not be out of reach these days, thanks to an improving economy and a robust housing market. One of the major things you need to consider however is whether or not investing in a second home is a good idea.

Vacation homes are luxury items, not cheap accommodations

Many real estate professionals and financial experts will tell buyers to think about their decision carefully before closing the deal. Sure, a second home might be something you and your family can enjoy for years to come, but it can also turn into a source of stress.

Instead of looking at a vacation home as an affordable vacation option, it’s better to think of it as a luxury item. Keep in mind that it’s less expensive to stay at hotels in different destinations compared to the required upkeep of home, including overall operations, property taxes, and expenses of caretaking. But if you’re buying a home in a vacation destination you frequently visit and enjoy spending time in anyway, then it could turn out to be a worthwhile investment.

Is it a good investment?

Vacation homes are uncertain as investments. Unlike a primary home, a vacation home is not considered a necessity, so prices tend to plummet as demand decreases during an economic downturn.

While owners may have equity in a second home, it isn’t advisable to depend on it as a proper investment as you might not have quick access to the equity whenever you may need it.

Another thing you should consider is that each vacation destination is different from others, so you’ll need to do extensive research on important factors such as sales and pricing trends, access to major highways and airports, and amenities such as golf courses, restaurants, ski slopes, and beaches.

When doing your research, one of the best things you can do is to talk to real estate agents and other property owners in the neighborhood. You can also look at pricing trends on online real estate sites like Zillow.com. The most important thing is to have multiple sources of information instead of relying solely on the person who’s trying to sell you the property.

Personal reasons

Even if you can handle all the finances of buying and owning a vacation home, it all boils down to personal reasons. Considering all the responsibilities, is this something that will truly make you happy? Do you think your children and grandchildren will stay in the home as often as you hope? Will you able to live with the financial setbacks and not regret your purchase?

In short, it’s best to look at a vacation home as a long-term commitment. If it fulfills a lifelong dream and is something that will bring joy for many years to come, then it’s well worth it – just remember to consider all options, do your research, and take all the time you need before taking the plunge.