Before Buying a Vacation Home

By
Real Estate Agent with Chapman Hall Premier Realtors

There's a fine difference between a second home and a vacation home.  If you are going to primarily use the home for yourself, then, it is probably a second home.  If you're going to use it some during the year and rent it out the rest of the time, it is probably a vacation home.

There is another possibility.  If you use it for 14 days a year or less, the property could be a rental property which means you may have some benefits that are not available to vacation properties.  These may seem insignificant, but the tax laws require that they are handled differently.

Try to be realistic about what your expectations are for the property.  Are you looking for an investment that will earn rental income and go up in value?  Are you trying to find a way to lower the costs of vacations by owning the property?  How do you feel about strangers using your property when you're not there? 

Vacation rentals are short-term which may realize higher rents, but they could also have higher than normal vacancy rates.  Maintenance and management are usually more than on long term rentals.

If your objective is to have an investment, you could analyze the property as a vacation property and a long-term rental to see which might provide you the best results.

It would be a good idea to do some research on the area you're considering investing to find out about appreciation trends and the local economy.  A local REALTOR® can provide you with valuable information before you invest as well as revenue and expense estimates.

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Rainmaker
3,239,620
Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information, thanks for sharing.  I hope you are having a great month.

Feb 15, 2020 01:49 AM #1
Rainmaker
5,628,159
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much for following my blog. Your comments are always welcome.

Feb 15, 2020 05:35 AM #2
Rainmaker
445,038
Steffy Hristova
HomeSmart Elite Group Tempe AZ Tel: 480-966-9353 - Tempe, AZ
Tempe AZ Realtor - Your Home Close to Your Work!

Excellent definitions of second home and vacation home, as well as the invitiation to think of the future use of it. Local REALTORS® are always helpful with identifying trends, market activity. Thanks very much for the 'follow'.

Feb 15, 2020 08:06 AM #3
Rainmaker
833,738
Norma J. Elkins
Elite Realty Group - Morristown, TN
Realtor - Elkins Home Selling Team

Some great information on the 2.  Who doesn't love a tax deduction anyway?  Thanks for the "follow" and I hope that you ave a wonderful day!

Feb 17, 2020 05:52 AM #4
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