Blog Post

Thinking about a vacation property?

Rita Cousins Senior Mortgage Advisor • January 18, 2021

LET’S WEIGH THE PROS AND CONS.
Choosing to own a vacation property or second property can offer you many exceptional advantages, but are your ready for the commitment?

PROS

✓ GREAT INVESTMENT
Real estate has historically risen in value, especially
in areas with limited availability.

✓ RENTAL INCOME
If you choose to rent, you can benefit from
additional income.

✓ RETIREMENT TEST DRIVE
Experience the benefits of retirement ahead of time
& see if the reality lives up to the dream.

✓ CONVENIENCE
Your vacation property allows you to take holidays at

the drop of a hat, without the hassle of that extra baggage.

CONS

✘ UPFRONT FEES
A vacation home will very likely cost more than renting.
You also have to furnish and decorate.

✘ MORTGAGE COSTS
Downpayments are often greater (30-35%) as are the
interest rates.

✘ UPKEEP EXPENSES
Just as you do at home, you’ll have to maintain your
vacation property.

✘ JUSTIFICATION
Since you have made the investment you will feel obliged

to visit it. Make sure you’ll love it as much as you do right now.