Many of us dream of owning a second home in the sun that we can go on vacation to whenever we want. While this may seem like something only the rich and famous can aspire to, it may in fact be in your reach. A vacation home can be not just a personal luxury but an investment. Below are just a few ways to achieve your dream vacation home.

Affording a second home

Few people can buy a second property in cash, which means taking out a mortgage. If you already pay a mortgage or currently pay rent on your home, it may be too much of a stretch to then pay another mortgage on a second home. If you’ve paid off your mortgage on your first home, then a mortgage on a second home might be more achievable. However, you’ve still got to be accepted by a lender - if you’re nearing retirement age, this could be difficult.

One way to make a second home more affordable and achievable is to let it out to guests while you’re not there. By receiving rent from guests, you can cover the cost of the mortgage and any bills. You may even be able to make a profit on top. There are specialist lenders out there that offer vacation home loans - these could be worth looking into to increase your chances of being accepted for a mortgage.

Running a vacation rental isn’t easy. You’ll need to market your property effectively to attract guests (the likes of AirBnB are popular sites for advertising vacation rentals). You’ll also need to hire a local property manager who can give guests their keys, clean the property and maintain the property for you. Location could have a big impact on how successful you are at attracting guests - some locations may not get a lot of tourists, while others may be busy all-year round but may have a lot of competition. Some locations may also only attract seasonal tourists, which could mean receiving no rent for half the year.

Finding the perfect location

Location is everything. First and foremost, it needs to be somewhere that you love - perhaps a frequent vacation spot that you’re already familiar with. Secondly, it needs to be reasonably priced. Prime locations will likely be too expensive to buy a property. Thirdly, if you’re renting it out to guests, it needs to be in a location that will appeal to tourists.

Getting a balance of all three isn’t easy. You may have to make some sacrifices to try and tick all the boxes. Such sacrifices may include:

· Choosing a remote location: It can be convenient to have attractions, shops and restaurants on your doorstep and it could help to attract guests - however you’ll likely pay a higher price for such a location. A remote location could be a lot more affordable. If you enjoy your peace and quiet, it could be ideal (just make sure it’s not so remote that it puts off guests).

· Sacrificing a sea view: If you’re keen to have a vacation home by the coast, it could be worth weighing up the importance of a sea view. A sea view will push up the price. A property that is a five minute walk away could be cheaper, while still offering you (and guests) convenient access to the sea.

· Choosing a fixer upper: Fixer-uppers are properties that need a lot of work doing. They’re generally cheap to buy, but you’ll need to spend money on a lot of improvements to make them worth living in. It might enable you to afford a property that is more central with better views. If you’re a keen handyman, you may find that you’re able to do a lot of the improvements yourself - potentially saving a lot of money on the fixing up process so that it’s not such a big deal.

· Opting small: A large villa in a prime location might be out of your budget. However, a small one-bed apartment could be affordable. It may not be ideal for big family reunions, but as a getaway for you and your partner it could be perfect. You’ll also have no trouble attracting guests (especially if it’s a location that attracts a lot of solo travellers or couples).

Adding your dream features

It may be difficult to find a property that has all your dream features. However, by opting for the right property, you may be able to add in many of these dream features yourself. Such features will not only help to make it the property of your dreams, but could also make it more attractive to guests.

Some dream features you could add in could include:

· A swimming pool: Buy a property with enough land and you may be able to add your own private pool. Swimming pools do require a lot of maintenance - so bear this in mind when adding one. Such a feature could help to attract guests.

· A hot tub: If your ideal vacation home is located somewhere cooler such as a mountain or ski resort, consider whether a hot tub could be a feature worth adding. Guests will definitely be drawn to this feature.

· A sauna: If you’re adding a hot tub, why not also add a sauna? Turn your vacation home into a private spa.

· Boat access: When buying a property on a river or on the seafront, consider whether boat access could be an option. Boat lifts could allow you or others to bring their own boat. Alternatively, you could add a jetty for tying up your own boat there permanently.

· A fireplace/fire pit: An indoor fireplace or outdoor fire pit could provide some cosy natural warmth. This could be a perfect feature for attracting guests to your vacation home in winter. You will have to supply firewood however.

Somewhere to retire to?

A vacation home could be more than somewhere to go on vacation to - it could be somewhere that you eventually retire to. By the time you move in, all renovations will be done and you may have even paid off your mortgage on it.

Ideally, if this is your strategy, you should choose somewhere that is senior-friendly. You want a vacation home that you can grow old in - this could mean somewhere with few stairs and amenities within walking distance.

by Contributing Author