Pros and Cons for Investing in a Vacation Property - Talk About Marriage
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post #1 of 1 (permalink) Old 06-05-2017, 12:58 PM Thread Starter
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Pros and Cons for Investing in a Vacation Property


If you have some extra money and you’re thinking about investing in a vacation property, take the time to consider the pros and cons. In many places, real estate prices and mortgage rates are at an all-time low which makes it an attractive option. Buying property is a major investment, however, and a risk – you need to consider all aspects of the decision before you make it. Here are some pros and cons to think about before investing in a vacation property:

Pros for Buying a Vacation Home

Buying property always comes with a certain degree of risk but a vacation property may be a more stable long-term investment, especially if it is located in a popular area with limited room for expansion (this increases demand and controls the supply). You can also rent your vacation home for additional income, if that is something that interests you. If you plan to keep the home vacant when you aren’t using it yourself, it can still deduct the interest on your mortgage as well as your property taxes from your annual gross income.

Many people purchase vacation homes not just for their own use, but for the use of the whole family. A vacation home becomes a gathering place for friends and family and it may be more convenient to have a second home in a location you frequent rather than packing for a hotel every time. If you really like the location of your vacation home, it could even become your permanent home upon retirement. Buying your retirement home early and using it as a vacation property means that it could be paid off by the time you actually retire.

Cons for Investing in a Vacation Property


Though owning a vacation home can be great, it does come with some challenges and drawbacks. In many cases, people want a vacation home that is an improvement on their original home – this can translate into high prices and a high initial investment. You also have to consider that prices may be higher in locations where space is limited. When it comes to purchasing a vacation home, if you intend to make it a non-owner-occupied property, you might have to put down as much as 20% or 30% of the purchase price. If you add to that the cost of furnishing the property, it is a major investment.

Another potential challenge of owning a vacation property is keeping it well maintained. If you spend a lot of time in the home you may be able to do some of the work yourself and it will be easier to get a handyman or contractor in do bigger projects. If you don’t live there, you might have to make a special trip. You must also consider the travel time and the cost of travel to reach your vacation home as often as you plan to use it.

Having a vacation home sounds great, but it is a major decision that requires plenty of thought. Keep the above pros and cons in mind as you think about this option and do plenty of research on your own. Whatever you end up deciding, you’ll know that it is the right choice for you.

~ VS Glen Community Support

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