Do you fall in love with your vacation spot, end up scanning real estate listings and wonder: what if we could buy a home here or rent a place there the same time next year?
While it’s fun to dream, it can be difficult to decide whether renting or buying a second home is the best option. The choice comes down to more than whether you want a permanent spot to keep your flip flops. For instance, if you visit the same spot every year, you may want to consider if it makes more financial sense to buy a home rather than help pay for someone else’s second mortgage. Are you approaching this decision as investor, hoping to generate cash or sell at a higher price down the road? Is it about convenience? If so, is it more important to have a set place to stay, or is it better to not have the hassle of upkeep and managing a property remotely?
Besides comfort and convenience, there are many financial implications to consider when buying versus renting a home.
Let’s take them separately. First, the advantages of renting:
Now, the advantages of buying:
We might not be able to help you decide between the beach or the mountains, but if you are thinking about renting or owning a vacation home, Rockland Trust can help you figure out what makes the most financial sense.
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