Owning A Vacation Home

Owning A Vacation Home

Question: What are the pros and cons of owning a vacation home?

Answer: One of the main considerations in owning a vacation home is how you intend to use it. Will it be for pleasure or investment? If you plan to use the home as a recreational property for your personal use, then consider it a vacation home. If, on the other hand, you are purchasing the home with the aim of renting it out, it's an investment property.

Another important factor is how much will you use the home? If you already visit the location several times a year, the answer to this one is easy. If the location is inconvenient, on the other hand, you may find that you will rarely use it. A related question is how you'll handle maintenance, especially emergencies, if the home isn't located within a few hours' drive.

Something else to consider is can you afford it? Aside from what it costs to purchase, you'll need to factor in maintenance costs, management fees, property taxes and many other costs that accompany homeownership. Maintenance chores may eat up a big portion of your vacation time, especially if the home sits vacant for a significant amount of time.

If you rent the house out, it still may sit vacant during off-peak seasons. That's money lost if you hope to use the home as an investment.

Because loans for second homes are considered somewhat risky, they tend to be more expensive. You may be required to place 30 to 40 percent down on the home when you purchase it, and if you'll be using the home for income purposes, you may be paying up to two percentage points higher than on your primary residence.

There's a lot more to it and I'd be more than happy to discuss this further with you and answer any questions you may have. Just give us a call.

Author: Lesley Vitel
Phone: 904-534-8052
Dated: December 16th 2014
Views: 414
About Lesley: Lesley's career in real estate officially began in 2005 when she partnered with her mother Lynn (A v...

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