Buying the (second) home of your dreams
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Try before you buy
Once you're confident that you have the financial resources you need to buy and maintain a second home, test-drive the lifestyle before you seal the deal. For instance, rent in the area for several years to see if you will truly want to return to the same place again and again.

"Make sure that the type of property that you rent meets your lifestyle equally to the property that you are going to buy," says Ric Edelman, author of "The New Rules of Money."

"Very often, people will rent a five-bedroom home on the beach, but they can't afford to buy that. They end up buying a small condo two miles from the beach only to discover that they don't really like living in that condo, which defeats the purpose."

Also, figure out if your lifestyle will hinder your use of the second home. If you spend every Saturday shuttling your teen to soccer games, you won't have enough time left over to get away for the weekend. If you must fly to get to your second home, think about how often you'll have blocks of time available that are long enough to make the trip worth the flight.

Bankrate tip: Keep an eye on future growth in the community: Will the characteristics that drew you to the area vanish in five to 10 years due to rapid development?

"Be aware of the pattern of growth there and how it's likely to impact what you view to be a little piece of paradise today," Mills says.

Consider the alternatives
If you're on the fence about whether buying a second home fits your lifestyle or budget, consider some of the alternatives.

Rent a cabin or condo to get all of the perks of your prospective haven without the long-term commitment. Not only do you skip the cost and hassle of monthly maintenance, but if you grow bored or the area loses its charm, you can go somewhere else without losing money.

If you want to own but don't want to carry the full financial burden, try fractional ownership, where several people pool their resources to buy and maintain a property. But proceed with caution when buying a second home with friends or family members. It can work, but money can ruin the best of relationships.

"The more people that are involved, the more complicated the arrangement becomes," Mills says. "You have to come up with a way to divide the usage that everyone feels is fair, and you might miss out on some key time periods that you would like to have the place." Plus, you need to think through things like who will handle collecting each owner's share of the maintenance costs and pay the bills, what will you do if someone dies or wants to sell their share, and how the property will be furnished and maintained.

If you don't want to be tied to one location or you'd prefer a business-only arrangement, consider buying a share of a property as part of a club, such as the Ritz-Carlton.