What is a Vacation Home?

Vacation home is a home where the owner does not live rather uses it for only recreational purposes including vacations or holidays.

A vacation home is also known as a recreational or secondary property or residence.

Generally it is located in a different location from the owner’s primary residence because the owner uses it for a certain time in a year.

It differs from your primary residence where you live in

Definition of Vacation Home

According to the Merriam-webster Dictionary, Vacation home is a house that someone lives in during vacations.

According to the Law insider, Vacation home means a dwelling that is used primarily for recreational purposes and enjoyment, and that is not a primary residence.

KEY TAKEAWAYS:

• It is a property aside from one’s primary residence

• Used for recreational purposes.

• The owner can rent it out when not in use

• There are operational costs to owning a vacation home even when one doesn't reside in the property such as property taxes, insurance, repairs, and interest on

• A timeshare is an example of a vacation home that is shared and owned by several individuals who use it according to designed periods of time.

Types of Vacation Home

When one intends to buy a vacation home, there are so many options and concepts of vacation home.

Lets see the most common types(14 types) of vacation home

1. Lakefront cottage/Lake community

Lakefront cottage/Lake community is one of the most popular types of vacation homes.

Lakes are destinations when it is summer. But Sometimes people use it in the winter season as well.

When we are talking about such types of homes, there may arise a question: how much does such a home cost? The answer of such a question varies depending on the location of the home.

If it locates near an urban center or to resort area, they can cost millions.

What can you get there? There you may enjoy

• Boating

• Fishing

• Hiking

• Mountaining

• Biking and

• Other options

2. Oceanfront house/Oceanside community

This type of vacation home is located in front of an Ocean. They may be several in types like with beach or without beach.

Beach houses are generally costly because they are limited in number.

3. Riverfront cabin

Riverfront cabin is the best choice for the person who likes fishing. Along with fishing he/she can enjoy boating, hiking.

3. Ski chalet, townhouse or condo.

Generally ski resorts offer such types of vacation homes/properties. You can find such type of resorts in Colorado, Utah, British Columbia and Europe. These types of properties can be highly expensive.

You can enjoy there

• Mountain biking

• Hiking

• Swimming(in pool)

• The village in warm weather

5. Cabin in the woods

There are several reasons one might buy a cabin in the woods. They are:

• Hunting cabin;

• A place to get away from it all;

• Hiking trails;

• Recreational motorsports – snowmobiling, ATVing, motocross, etc.

6. Boat with living quarters

If one scores a boating slip with live-aboard permission, there’s no reason he can’t treat his boat as a vacation property.

One can keep it in the marina or take it out on the water. It’s a nice way to get away from the routine

7. Countryside property

If one lives in the city or the suburbs, he might enjoy getting away to a countryside house where he can relax, hike, and use a launching pad to visit around the area.

8. European villa

When one has plenty of money, he can splurge on a European villa. Actually, there is no need to buy a full-blown chateau or palace. There are smaller villas that don’t cost nearly as much as the beauty above.

In Europe, it’s easy to get to. If elsewhere, it’s a bit of a haul but could provide for a great home base from which to see much of Europe.

9. Jungle hideaway

Planning to spend some time in the Jungle? In this case you have options in Costa Rica where you can enjoy hiking, adventure activities and unwinding.

10. Mobile vacation home (RV or park)

When someone thinks of lower cost to spend vacation time, it is better to choose a mobile vacation home.

They are all over Canada and the USA. Often they cost less than $100,000. Some parks are feature-rich with

• Pools

• tennis courts

• golf course and more.

• They can be a ton of fun.

11. City apartment

When someone plans to spend vacation time in the rural area, City apartment is the best choice for him/her.

In the city apartment he/she can have

• Soak up culture

• restaurants

• shows

• shopping and more.

12. Hotel/resort suite ownership

More and more hotels/resorts sell ownership stakes in their properties that give you a stipulated number of days each year.

What’s nice about this is you get all the amenities of a hotel plus revenue income for the days you don’t use. Moreover, because it’s often partial or limited-use ownership, it’s not that costly to buy in.

13. Floating Home

Floating home is a fantastic place where one can spend vacation time.

It is flexible and comparatively less costly

14. Quaint town apartment or house

There are so many Quaint towns all over the world. One can find them in the

Europe, Canada, the USA, Central America, etc.

But if you consider to buy an apartment or house, please consider in your favorite haunt.

Vacation Home vs. Investment Property

Purpose: The main purpose of vacation home is to visit on vacation/holy days; sometimes used to earn income. On the other hand, the main purpose of Investment Property is to generate income

Distance: Generally it locates at a distance from the residence home but in case of the investment property it is not required.

Mortgage rates: It is typically lower for the vacation home than that of investment property.

Tax treatment: Can claim some deductions; taxes depend on whether and how often you rent it out but in case of investment property, Must claim income on taxes; can claim some deductions

What are the Tips of buying a vacation home?

Planning to buy a vacation home? Well. Lets see what are the things you should consider while buying a vacation home.

1. Weigh the pros and cons.

2. Be prepared to take on more responsibility.

3. Consider your lifestyle.

4. What are your financial goals?

5. Location is key.

6. Work with an agent who specializes in buying vacation homes.

7. Look at your rental options.

8. Answer the question: Is now a good time to buy a vacation home?