Vacation Homes Without All the Expense

[jeffrey]

With home prices tumbling in some of the country's most attractive second-home destinations, it might be tempting to pick up a bargain on a beach cottage, a cabin in the woods, or a pad close to the Vegas strip. But wait. It may make more sense to rent and take the financial stress out of owning a vacation home.

The real estate market these days is fraught with risk and could take years to recover, especially in the sunny-but-toxic Florida, Nevada, Arizona, and California markets, home to many of America's most popular winter getaways. Renters don't have to worry about condo fees, maintenance costs, escalating mortgage payments, falling home prices, or leaky roofs. And they can take advantage of the slumping real estate market.

Apartment rents have stabilized or dropped in Florida, Nevada, and Arizona as landlords compete for tenants with desperate condo and homeowners, including those leasing properties they're unable to sell...

Vacation Homes Without All the Expense

[disneysteve]

We looked into buying a vacation home in Florida years ago, before the bubble, and even then, the numbers just didn't work out. The costs and effort involved in maintaining and renting out a home 1,000 miles away just weren't worth it. I even spoke with several people who already owned vacation properties in the area and they all said the same thing - it wasn't worth it. Most were barely breaking even or losing money. The ones who were making a profit said they spent several hours per day attending to house-related business, something we weren't prepared to do.

We have continued to rent homes when we travel there for a fraction of what owning would cost.

[Tree0164]

My folks own a vacation property near one of the Lakes in NH. My Dad built it so it house more than a cottage. They have had it for over 20 years now. They don't rent it out. They go up every weekend from mid June through Labor day. In addition, they go up for 2 weeks in July. Each of the kids (3 of us) go up for 1 week with vacation with the family during the summer. My aunts have vacation homes on either side too.

However my Dad is retired and my mom is nearing retirement so it maybe sold soon. Taxes, water and all other bills are huge and while they have the money to support it they don't necessarily need the hassle of a 2nd home.

[cashing_in]

This a ideal time to invest in vacation homes and rent some part of it to vacationers you can do a good business.

[disneysteve]

This a ideal time to invest in vacation homes and rent some part of it to vacationers you can do a good business.

That is a very broad statement that might be true in certain locations but you definitely can't generalize like that. Owning a rental vacation home in the best of markets can be very difficult. Making a profit or even breaking even can be tough and involve many hours of work on the part of the owner to drum up business, speak with potential renters, etc. Now, even though home prices have dropped in many areas, rents haven't risen nearly fast enough to match costs. So if you are considering buying a vacation home to rent out, make sure you do your homework and know what you are getting into.