Chic vs. Geek: Second Homes

Typically, a second home is used as a vacation home, though it could also be a property in a place that you visit on a regular basis, like a condo in a city where you frequently travel for business. The rest of the year, it could be leased out to generate additional income.

Chic (Pearl)

Second homes, especially vacation homes generally retain or appreciate in value simply because they are located in popular areas with limited housing supply. They have potential for creating personal enjoyment as well as income. And they can also provide convenience and comfort. Whether your goal in buying a second home is recreation, vacation, investment, development, or retirement planning, it’s important to understand local taxes and laws so you know the financial implications. Here’s a good resource.

Geek (Kevin)

The idea of a head start on retirement and access to a vacation home is very tempting. But the inherent inflexibility of visiting the same property over and over makes me think twice. A second home makes sense if you found a place you love that’s like a second home, where you and your family want to be for long periods of time. Personally, I like to keep my travel options open. As usual though, Pearl’s right: If you’re looking into a second home, you might be able to collect a little rent, but you should double-check the local laws.