Have you considered buying a vacation home? Sure, a seaside escape or a remote cabin may sound like an excellent way to spend a summer, but is buying one a fiscally responsible decision?
A recent study from the National Association of Realtors found that while the number of people who bought second homes strictly for vacations fell between 2016 and 2017, the number of people who bought vacation homes as an investment stayed exactly the same.
What does this tell us? As long as you plan to treat your summer vacation spot like the investment that it is, these real estate ventures are still worthwhile to many as one method of asset diversification. Just be sure to keep up with estate planning like you would with your primary property.
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