Here's What You Need to Know Before You Buy a Vacation Home
Owning a vacation home comes with financing, tax, and management issues. Here's what you need to know before you decide to buy a second home in your favorite vacation spot.
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Have you ever considered buying a property in your favorite vacation destination? Maybe you’re tired of paying high rental prices. Or your family needs more room than you can get in a hotel or reasonably priced vacation rental. Or maybe you just want a place for your family to gather whenever it’s convenient.
There are many good reasons, and places, to buy a vacation home. But, like any major financial decision, there’s a lot you should know before you commit.
For example, did you know that there’s a special category of mortgage loans for vacation homes and other non-primary residences? Or that property management fees for vacation rentals can be three times what you’d pay a property manager to manage a long-term rental property?
With that in mind, here’s a rundown of the pros and cons of buying a vacation home, as well as what you should know about taxes, financing, and other issues before you start looking for properties.
