Next Generation of Baltimore

Vacation homes are a big waste of money?

Author: Nicole

The rent is a waste of money, or not? This is what we have been conditioned to believe for generations. Even when the housing market is more stable and prices are steadily rising, buying a vacation home can not be the best decision for your wallet.

If you buy a holiday home that you need a couple of months a year? Take a look at a simplified example to highlight what it costs to own a vacation home. You buy a home for the holidays, and monthly costs including mortgage payments, property taxes, insurance, HOA, or other maintenance and utilities is $ 3,000 a month. You can use the house for three months a year, even if you pay 12. So you pay $ 3,000 a month for 12 months or $ 36,000 per year and using the house for three months at a cash cost of $ 12,000 per month ($ 36,000 / 3). You can rent a vacation like this in the same area of ??$ 4,000 per month or $ 12,000 for the season. ’24 Thousand dollars you’d pay more for homeowners for years by renting it ($ 36,000 – $ 12,000). Over five years you would have spent $ 120,000 more for their homes ($ 24,000 x 5 years). Yes, the house you can enjoy, but you must subtract the purchase and closing costs and the potential sale of a real estate commission of any assessment. Read the rest of this entry »

Tags: monthly costs, steadily rising
June 1st, 2011  |  Posted in Vacation Homes  |  Comments Off