Fiction: Owning a second home is no different than owning one property—the costs are the same.
Fact: In addition to the down payment on your home-away-from-home and the possibility of having to pay two mortgages, a second residential property may come with other costs you haven't considered, such as car insurance. (Florida, for instance, requires anyone staying there for more than 90 days to meet its minimum insurance requirements.) It's also important to think about utilities and maintenance. Your primary house still needs attention even if you spend months away from it. Other costs to consider are property taxes, furnishings, association fees, management fees if you rent your property when you're not there, and travel costs when you fly or drive between homes.
Back to Archive
© Copyright 2017 Commonwealth Financial Network