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You enjoy getting out of town and relaxing in a certain spot — and so does at least part of your extended family. Whether you’re converging on a certain beach town or a cozy mountain village, it’s so special to everyone, you’re thinking about putting down roots.
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This can be a great idea for many reasons, including saving money on lodging. The average daily rate for U.S. hotel rooms from Dec. 26, 2021, through Jan. 1, 2022, was $157.91, according to hotel analytics company STR.
Depending on where you’re vacationing and the level of luxury you prefer, there’s a good chance your family is paying more than this — and not building equity. Therefore, you’re thinking about buying a vacation property with your extended family, so you can reap all the benefits of home when you’re away.
Purchasing a vacation property is a major life event and an even bigger deal when you’re sharing it with family. Therefore, it’s important to really think this through before taking action.
“Buying a joint vacation home with family — siblings, cousins, etc. — is the perfect example of something that sounds amazing in theory and can be disastrous in reality,” said Jodi RR Smith, president of Mannersmith Etiquette Consulting, based in Marblehead, Massachusetts. “There are many critical factors to consider and speak frankly about, before even touring open houses.”
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First, Smith said you’ll need to discuss money matters. This includes the budget, the amount each group will contribute, whose name will be on the deed and what happens if one group eventually wants out or someone passes.
Next, comes the wish list, Smith said. All buyers will need to agree on issues like the type of house, desired number of bedrooms and a plan of action if the house isn’t move-in ready — i.e., who is doing the upgrades and who is paying for them.
After that, she said it’s time to tackle the sticky stuff. This might include topics like access to the home — Is everyone allowed to be there all the time or will you need to create a reservation system? How will holiday weekends be handled? — a decision on how bedrooms will be allotted, a guest policy, rules on smoking and guidelines for …….