Investopedia

Continue to Site »

Vacation Home

Filed Under » ,
Dictionary Says

Definition of 'Vacation Home'

A dwelling other than the owner's primary residence that is used for recreational purposes, like vacations (hence the name). Because vacation homes are only used at certain times, many owners will rent out their vacation homes when they are not using them. For example, a couple living in Maine might occupy a vacation home in Florida during Maine's coldest months and rent it out to other people for the rest of the year.
Investopedia Says

Investopedia explains 'Vacation Home'

Mortgages on vacation homes typically have higher interest rates than mortgages on one's primary residence, because they have a higher risk of default (in the event of a reversal of fortunes, individuals are more apt to save their primary residence than a temporary one). Nevertheless, most of the other perks of home ownership still apply, athough the restrictions are a bit tighter. If one does rent out the vacation home, then there are limitations as to how long the owner can reside there and still deduct rental expenses. The sale of a vacation home does not allow for the same income tax deductions as the sale of a primary residence does.

Articles Of Interest

  1.

    Retirement Living: Renting Vs. Home Ownership

    Here are three simple questions you should consider when weighing this decision.

  2. Save On Planes, Trains And Automobiles

    Getting to, and around, your travel destination doesn't need to break the bank.

  3. Budget-Friendly Summer Fun

    Keep the kids out of your hair and wallet by saving on summer camps, sports leagues, day trips and more.

  4. Tips For Renting A Vacation House

    Follow these nine steps to get a picture-perfect summer shack at a great price.

  5. Timeshares: Dream Vacation Or Money Pit?

    This popular real estate product has its advantages, but don't expect to make a profit.

  6. Vacation Home Or Income-Producing Investment?

    There is an alternative to letting your cottage sit empty all year, but turning a profit won't be easy.

  7. Top 9 Vacation Destinations For Wall Street Geeks

    Indulge your inner geek with one of these financial-themed holiday getaways.

  8. 6 Wealthy People Who Owned Private Islands

    Larry Ellison and Richard Branson are just two of the people who bought their own private islands.

  9. Safe Ways To Couch Surf

    Many websites connect travelers with people willing to allow them to stay in their homes. How can you remain safe while couch surfing?

  10. 3 Careers That Offer The Best Vacation Packages

    Jobs in education, government and the financial services industry offer the best vacation benefits.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Validation Period

    The amount of time necessary for the premium on an insurance policy to cover the commissions, the cost of investigation, medical exams and other expenses associated with the issuance of the policy.

  2. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  3. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  4. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  5. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  6. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
Trading Center