Guide to Buying a Second Home or Vacation Home

5 steps to buying a rental property or weekend getaway

By Marcia Jedd, FrontDoor.com | Published: 8/04/2008

Step 5: Research alternative ownership options.

In addition to single-family homes, townhomes and traditional condominiums, experts say to tread cautiously with alternative ownership forms of vacation homes such as fractional ownership, vacation clubs, time shares and condo hotels.

Resale values on certain types of cooperative-ownership properties may not hold up over time and selling these properties can be a burden. "Resale values on fractional ownership properties are usually higher than time shares because very few timeshares are actually deeded ownership," Krinke says.

Financing is easiest around single-family homes, Krinke says. "Multifamily dwellings, townhomes and particularly condos, can be difficult to arrange financing for."

Whether you're looking for a home to spend your retirement days or an investment property to diversify your portfolio, make sure you do your homework and work with the right experts.

<< Step 4: Learn the tax ins and outs I Guide to Buying a Second Home or Vacation Home >>

GO TO: House Hunters Homebuying Guide

Read the Top 10 Things to Know About Buying a Second Home

  1. Resist the urge to impulse buy
  2. Evaluate your needs and long-term goals
  3. Get to know the area before buying
  4. Hire a local real estate agent
  5. Decide what type of home is right for you
  6. Shop around for a mortgage
  7. Calculate additional expenses
  8. Consider fractional ownership to cut down on costs
  9. Look into tax benefits
  10. Rent your home out for extra income

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