Photo credit: Dan Trosch
Tricks and Traps for a Vacation Home
Picture owning a house in one of the eight states with some views of the Blue Ridge Mountains. This might be a family retreat, a place for couples, or simply a WFB (work from Blue Ridge) destination. Think an older house with a small amount of forested land. This setting may not be your ideal vacation home, but many of the same principles apply.
Why pick this specific location? Well, as we all know, location is key and the mountains offer me serenity and activity all year long. If you are looking for a vacation home, consider the following:
- Be within 20 minutes of small town(s) that offer at a minimum a diner/cafe, gas station, and hardware store
- Larger towns not too much further that could offer more restaurants, large stores, and a hospital.
- Lifestyle activities, such as proximity to hiking areas, recreation/ski areas, water activities, performing arts venues, and wineries/breweries – seek a variety.
- Be within 90 minutes of an airport so that friends and relatives can easily visit.
If you intend to make renovations, be sure to set a healthy budget and have a separate maintenance budget. For my house, I developed a budget and met with contractors. This is a process that requires some thoughtfulness and a degree of trust to have a good working relationship. After having one contractor go forever missing, I found a reliable contractor. The original plan was a kitchen/bathroom renovation, plus painting and decorating various rooms. My contractor ensured the kitchen makeover was spectacular, right down to the Juniper Green we selected for the cabinet color.
However, when the bathroom renovation was about to begin, the plan started to fall apart. Suddenly I had two essential “waterworks” projects. The septic tank needed replacing. The work itself didn’t take long, but it required several steps over three months. When it was done, I was able to start the bathroom renovation. However, I soon learned that the well pump and water lines needed replacing, and a new filtration system installed. Both projects required a lot of digging, and there were some boulders. Luckily, I did not have to pay the “rock upcharge.”
By the time the bathroom was done, 70% of the budget was spent on things that are not fun and that you can’t see! I had been warned up front about septic systems and had a contingency plan. But it meant re-examining the budget for other planned renovations.
Two years into the project and the second bathroom renovation is almost complete. Now that I have my house in the location of my dreams, I can reflect on a few things. This project reinforced a lesson we often discuss with clients: unexpected expenses are not a matter of if, but when. And having a thoughtful plan, adequate reserves and the flexibility to adapt can help keep renovation projects and financial goals on track.
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