Vacation House or Vacation Condo? Five Questions that Will Help You Decide

by Mary Ann Romans | More from this Blogger

26 Feb 2008 09:55 AM

Now is a great time to buy a vacation home, as prices for second homes are very attractive to buyers. Also, vacation home can be used as an investment and/or to generate income. But is it wisest to buy a house or a condo for your vacation home? Here are five questions to help you make the right decision.

1. What is your budget?

Your budget may affect which option you choose for your vacation home. In general, houses cost more than do condos, and so many first-time vacation home buyers chose a condo. In a downturn real estate market, you will find bigger deals on condos. The financial downside of the condo, though is that a house should appreciate more.

2. Will you rent your vacation home?

Renting out the vacation home when you aren't using it can help you recoup some of the cost of the home and may in some cases even earn you money. If you are willing to give up some time during the peak season, you may pay your monthly mortgage in the rental fees you get in a single week. Renting out a house is generally very straight forward with little restrictions. Renting out a condo may present more difficulty because of condo association rules. If you are considering a condo and do want to rent it out, make sure to check with the association bylaws.

3. Will you keep the property for a long time?

If you are looking to sell a condo quickly, you may not recoup your investment. This is because in a tough real estate market, condo owners feel the pressure more than do owners of houses, as buyers tighten their belts. If you plan to be in the vacation home for the long haul, then you may not worry about this issue.

Check back soon. We still have two more questions to go!

Mary Ann Romans writes about everything related to saving money in the Frugal Blog, technology in the Computing Blog, and creating a home in the Home Blog. You can read more of her articles by clicking here.

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Learn more about Mary Ann Romans

Mary Ann Romans is a freelance writer, wife and mother of three children. She lives in Pennsylvania with her husband, the kids and a 16-pound cat.

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