What to Know Before Buying a Recreational Home

Midwesterners are no strangers to the lure of cabin life. For those living near Hayward, Wis., the temptation can be double with year-round activities and the famous American Birkebeiner in our backyard.

For those considering a commitment to our community, welcome! Here are the things you need to know before you start property hunting.

Carefully Consider Costs

When considering a recreational property, consider all the normal costs associated with home ownership, from utilities to maintenance.

• Utilities such as heating, water, and electricity can add up, particularly in winter. Consider the up-front cost of installing energy-efficient appliances and setting smart controls.

• Services like lawn care, snow removal, and even security are important to consider. While you might take care of these tasks at your primary home, finding a trusted partner to help keep an eye on your vacation home while you’re away is essential.

• Unexpected expenses such as a broken boiler or a leaky roof may cause financial difficulties and set you back. In many cases, recreational properties have more deferred maintenance or upkeep. Your emergency fund must grow to support your investment.

Rent Versus Enjoy

Some may consider or even count on rental income for vacation property to help offset expenses, while others want to keep their escape to themselves. It’s important to be cautious when including rental income in any financial planning or calculations, as many factors outside your control can impact the real income rate you can achieve and your occupancy rate or how many days your property is booked.

It's also important to consider the additional costs you may incur when renting your property – from management companies or fees to cleaning services to taxes to incidental property damage and repair. While your investment may pay you, ensure you’re not over-estimating that income.

Ready to Commit?

Let us help you calculate your purchasing power for your second property investment. Rick Risberg, Bank President in the Hayward office, specializes in cabin, hunting, and land loans. With more than 45 years of experience, she can help you understand your best finance options.^?

"The Hayward area is truly a gem, offering the perfect blend of natural beauty and year-round recreational opportunities,” said Rick. “Whether you’re looking to invest in a cozy cabin or a scenic piece of land, I’m here to help you navigate the financing process to ensure your investment works for you."