Vacation Home

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.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Main Home

    A term used by ...
  2. Personal Property

    A type of ...
  3. Personal Use Property

    A type of ...
  4. Principal Residence

    The primary ...
  5. Property Tax

    A tax assessed ...
  6. Non-Owner Occupied

    A classification ...
  7. Condotel

    A condominium ...
  8. Staycation

    A vacation spent ...
  9. Traveler's Check

    A medium of ...
  10. Reverse Culture Shock

    The shock ...

Articles Of Interest

  1. 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.
  2. Tips For Renting A Vacation House

    Follow these nine steps to get a picture-perfect summer shack at a great price.
  3. Find The Best Mortgage Rates

    Search and compare the best fixed and adjustable mortgage rates in your area with Bankrate.com.
  4. Timeshares: Dream Vacation Or Money Pit?

    This popular real estate product has its advantages, but don't expect to make a profit.
  5. Top 9 Vacation Destinations For Wall Street Geeks

    Indulge your inner geek with one of these financial-themed holiday getaways.
  6. Budget-Friendly Summer Fun

    Keep the kids out of your hair and wallet by saving on summer camps, sports leagues, day trips and more.
  7. Retirement Living: Renting Vs. Home Ownership

    Here are three simple questions you should consider when weighing this decision.
  8. Save On Planes, Trains And Automobiles

    Getting to, and around, your travel destination doesn't need to break the bank.
  9. The Basics Of Travel Insurance

    Before going on your trip, find out what kind of insurance coverage you will need.
  10. The Advantages Of Vacation Insurance

    With a few simple policy additions you can protect your holiday plans from being ruined.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center