Vacation Homes: Economic Issues

Vacation homes are really quite different from other types of residential real estate properties. However, they do share some of the problems. Let's concentrate on the economic issues.

Vacation homes are expensive, very expensive. Assuming you finance the purchase, you will have an additional set of mortgage payments to make. Plus you'll have a second set of taxes and insurance to pay. Then there are utilities, upkeep, homeowner's dues, fire protection and a number of other concerns.

Basically, from a strictly economic perspective, a second home mostly makes little financial sense. However, finances typically have little to do with the purchase, and at the same there can be great financial upside if you buy the right property at the right time, but realize that's a risk worth consideration.

Next, we'll consider Vacation Homes: Why Buy!