Most second homes are used for vacation or family retreats. About 33% of second homes are in a resort, according to the National Association of Realtors’ Investment and Vacation Home Buyer.
The Wall Street Journal says most second homes are 1,500 square feet and over 35% of second home owners paid in cash.
There were over 8 million second homes reported in the U.S. Census last year. On average, it cost nearly $200,000 to own another home. So, what do you want in your second home?
To get the most out of your home away from home, rent it out. Up to 35% of all second homes in the U.S. are rented out. You can register your home on sites like Airbnb, VRBO or TripAdvisor to help pay it off.
Save yourself money on TVs. Use one streaming service to dispense cable at both homes. You may also be able to write it off on your taxes. Owning a second home allows you to deduct the mortgage interest and real state taxes. And if you prepay the interest when you close the loan, you can deduct the interest in the year paid.
"It depends on your net worth," according to financial adviser Celine Pastor. "It depends what tax situation you’re in."
But buyer beware, not all communities allow short-term rentals. So if you are depending on that income, check with local and community homeowner association rules before purchasing a second home.