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Buying Vacation Property: The Pros and Cons

Whether you spend almost all of your savings on luxurious skiing holidays, your idea of heaven is a white, sandy beach, or you’re getting close to retirement and want to escape the bustle of the city where you live, there’s vacation property out there for a wide range of budgets and tastes. Although having a vacation property sitting there waiting for you has an obvious appeal, is it really a good decision? Here are some of the major pros and cons to consider.


Perhaps the biggest benefit of owning vacation property is the long-term profits you’ll stand to gain. As you already know, all assets are subject to fluctuation over time. However, vacation homes have a much better chance of appreciating and retaining their value in the long-term. Beaches and mountains aren’t going to magically disappear, and there’s a geographically limited supply of these properties which are always going to be popular. While developments like this: http://linkhornplaceapts.com aren’t totally immune to value fluctuation, they’ve certainly got a better chance of big returns compared to other assets.

Another attractive feature about owning vacation property is the tax deductions you’ll stand to benefit from. Provided you allow and charge rent for occupancy when you’re not using your vacation home yourself, for no more than two weeks of the year, the interest on the mortgage and property taxes will be deductible from your gross income at the end of the tax year. In short, you can treat the mortgage on your vacation home the same way you would the one on your main residence.

Finally, the most obvious benefit of owning a vacation home is being able to rent it out, and draw income from it. If you’re planning to use the property for your own personal use as well, however, you’ll need to find out whether or not you can deduct the operating expenses. To determine this, you’ll need to add up the days you plan to rent the property. If you’re going to occupy it for fewer than 10% of the days you’re going to rent it, then all the operating expenses will be deductible.


Perhaps the most glaring drawback of owning your vacation property is going to be the cost and effort it takes to maintain it. As the owner, you’re going to be responsible for fixing up the home whenever it needs it. For some people, maintenance is enough to worry about with one home – let alone two!

The lack of flexibility is another thing that may turn some people off of the idea of owning a vacation home. Seen as you’ll be paying a pretty large sum each month, you may feel the need to visit the property constantly in order to justify the investment.

The initial purchase costs can be another major drawback when it comes to vacation homes. You’ll have high expectations for a home you intend to own, rather than rent. Real estate tycoons know this, and often enough those high expectations will translate into high prices.

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