CandleFocus Glossary Editor
Vacation home ownership has become increasingly popular in recent years and is a great way to get more out of your summer vacations. Vacation homes are typically situated in desirable locations, with breathtaking views and exciting locations. They give you the flexibility to explore different regions of the country, or even the world, without having to pack up your family's essential belongings from your home every time you return from an extended stay overseas.
Vacation homes can come in all different shapes and sizes. They range from condos in the heart of a bustling city, to luxurious cabins nestled in the mountains of Colorado, to sprawling beachfront estates on the shores of warm Florida ocean waters. Many people opt to purchase a vacation home that they can escape to year-round, while others take the plunge of buying a seasonal vacation home that they rent out when they're not using it.
When purchasing a vacation home, it's important to take into consideration the associated risks and costs. Due to the fact that most vacation homes are not a primary residence, mortgages generally involve higher interest rates, with slightly more stringent approval criteria. Additionally, vacation properties, even ones that are not direct investment properties, involve numerous expenses—such as utilities, insurance, maintenance and repairs, and taxes—that need to be paid for each and every month.
All of the above being said, vacation home ownership can provide many benefits—both personally and financially. In addition to gaining a comfortable and secure place to relax, you also have the ability to rent out your vacation home and generate additional income. With rising interest in staycations and remote work, rental income for vacation homes has become a boon for many investors. It can cover some, or even all, of the property's expenses in addition to providing a return on your investment.
When properly tended to and strategically leveraged, a vacation home can become an extremely smart and fruitful investment that pays dividends—both emotionally and financially—for many years to come. With the right property, in the right location, it's possible to make your future vacations even more special and secure your family's well-being.
Vacation homes can come in all different shapes and sizes. They range from condos in the heart of a bustling city, to luxurious cabins nestled in the mountains of Colorado, to sprawling beachfront estates on the shores of warm Florida ocean waters. Many people opt to purchase a vacation home that they can escape to year-round, while others take the plunge of buying a seasonal vacation home that they rent out when they're not using it.
When purchasing a vacation home, it's important to take into consideration the associated risks and costs. Due to the fact that most vacation homes are not a primary residence, mortgages generally involve higher interest rates, with slightly more stringent approval criteria. Additionally, vacation properties, even ones that are not direct investment properties, involve numerous expenses—such as utilities, insurance, maintenance and repairs, and taxes—that need to be paid for each and every month.
All of the above being said, vacation home ownership can provide many benefits—both personally and financially. In addition to gaining a comfortable and secure place to relax, you also have the ability to rent out your vacation home and generate additional income. With rising interest in staycations and remote work, rental income for vacation homes has become a boon for many investors. It can cover some, or even all, of the property's expenses in addition to providing a return on your investment.
When properly tended to and strategically leveraged, a vacation home can become an extremely smart and fruitful investment that pays dividends—both emotionally and financially—for many years to come. With the right property, in the right location, it's possible to make your future vacations even more special and secure your family's well-being.