Buying a Second Home

Buying a Second Home — Can you Manage the Expense?

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Buying a Second Home — Can you Manage the Expense?

Many people dream of owning a second home or vacation home. This may be achievable, as long as you can manage the expenses of two homes.

As with any large purchase, there are pros and cons to carefully consider.

As with any large purchase, there are pros and cons to carefully consider. On the plus side, a vacation home can be a convenient and desirable getaway destination and family gathering spot, and you may be able to offset some of the cost by renting it out. A second home might also prove to be a good long-term investment, especially if the property appreciates in value or if you plan to live there in retirement.

On the downside, owning a second home may limit your flexibility for taking vacations elsewhere. And, of course, there are significant financial considerations. As with your primary home, you are responsible for all maintenance and repairs. If you have a leaky roof or the furnace breaks down, you must cover the expense and make arrangements for the repair. Before you jump into it, be sure to factor in both the time and costs involved.

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