Second Home Strategies

While most people buy second homes using conventional financing, some are taking different approaches. Here are a few options:

• Pull equity out of a primary residence to buy a second home. This has become a popular investment diversification strategy in recent years.
• Rent your primary home and purchase your second home. This strategy might work well if you are planning to retire to the second home one day.
• Buy a vacation home and rent it out when you’re not using it, to help pay for it.
• A growing number of people around the West are considering fractional ownership, a fairly new option in which owners purchase fractional shares in a vacation home and use them for a certain number of weeks per year. While it may sound similar to most time-shares, in a fractional ownership program you own a portion of the vacation property and get a deed that appreciates for your share