Financial Review: Buying or selling a vacation home - that ski condo or snowbird destination? Considering selling the family retreat?
[excerpt from Inman.com]
The total cost of owning a vacation home is typically the driving factor in how much vacation home to purchase or for a client deciding to sell a property. There are some hidden expenses.
While we all know that homeownership costs more than simply principal and interest payments to the bank, the level to which additional expenses can mount for a vacation home can be surprising to homeowners.
Here are some common hidden expenses your clients should be aware of:
- Higher mortgage rate than a primary residence
- Utilities (Don’t forget high-speed internet!)
- HOA dues
- Improvements to the property
- Increased homeowners’ insurance
- Furnishing the home
- Toys (boat, side-by-side, golf cart, etc.)
- Travel to/from the property
- Cleaning fees