Owning a second home seems for many like the ultimate luxury. If you own a second home, you don't have to rent or stay in a hotel when you go away. You can do what you like with your second home, and stay there wherever you please. But the purchase of a vacation home isn't one to take lightly--taking on another home is a big investment, and it will likely limit your vacation options. While vacation homes aren't for everyone, there is a certain appeal to owning a second home, even if it does come with drawbacks like a second mortgage payment. The question becomes--why anyone would anchor themselves to a single travel spot when there's a whole world of vacation destinations out there for the taking? Are the benefits worth the drawbacks? Should you buy a vacation home?
As you already know, you don't have to buy a vacation home to enjoy the beauty and recreation of an destination. Area hotels are always ready to put a roof over your head and a pillow under it for the right price. If you prefer a little more privacy and space than you receive in a hotel, you can also rent area vacation homes. While you may not get a continental breakfast and maid service every morning, you'll might feel more relaxed and at-home in a house, and you'll have more space to spread out. Perhaps the best part of traveling in this manner is that you never have to visit the same location twice. Sure, you might find a hotel chain you love, but you're free to go wherever in the world you want at any time of year. Your only limitation is hotel availability and your ability to pay the rates.
Of course, there's a downside to jetting off to a new location every year or renting vacation homes in your favorite spot that the travel industry doesn't like to talk about. It's the cost. According to the 2010 vacation survey commissioned by the Wall Street Journal Europe, Americans are three times more likely than Europeans to take a vacation that costs more than $2,400 per person. That's nearly $10,000 for the average family of four! Granted, it will cost you more than $10,000 to buy a vacation home and maintain it, but vacation homes are property that have the potential to appreciate in value or even earn an income, if you want to rent it out. At the end of the day, if you've purchased a vacation home, you own something of value; if you've taken a $10,000 vacation every year, you don't.
Vacation homes don't make sense for every family. Imagine you buy a vacation home near Disney World when your children are young so you can see the wonder on their precious faces every year when they meet their favorite character. It works according to plan until they hit puberty and tell you they're sick of going to Florida. Now, you're stuck with a second mortgage for a house you never use and the travel costs for more diverse vacations. Buying vacation homes is most appropriate for people who've found that one magical spot in the world they could visit millions of times and never get bored. To buy a vacation home is a big commitment, so it isn't a decent option for people who want to explore the world and fill a passport with evidence of their extensive travels. At this point, you may be wondering why you wouldn't just buy timeshare instead of taking on a second mortgage. No doubt about it, it's an affordable option for some. The problem is that you have to travel at the exact same time of year, every year. Want to see the whales migrate in Hawaii in December? Tough. You're locked into your week in April. Your sister's getting married during your timeshare week? Oops. Use it or lose it. The brilliance of vacation homes is that you can spend as much time in them as you like, at any time of the year--unless you have renters--and you don't have to spend hours calling around for the best room rates. As long as you keep up the payments on your second mortgage, you're guaranteed a roof over your head and a pillow under it.