5 Pros and 5 Cons of Buying a Second Home in Retirement

Motley Fool

Sep 12

A second home gives you a place to go when you want to escape the real world. It can also be a source of rental income and extra home equity when needed. Maintenance and upkeep costs ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www.itiger.com/news/2566972552"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2566972552\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2566972552?lang=en_US&edition=fundamental","thumbnail":"https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F832451%2F2nd-home.jpg&op=resize&w=165&h=104","is_english":true,"pubTime":"2025-09-12 21:30","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2566972552","market":"fut","top_or_hot":-1,"title":"5 Pros and 5 Cons of Buying a Second Home in Retirement","media":"Motley Fool","content":"<div>\n<p>A second home gives you a place to go when you want to escape the real world.\n\n\n\n\n\n\n\nIt can also be a source of rental income and extra home equity when needed.\n\n\n\n\n\n\n\nMaintenance and upkeep costs ...</p>\n\n<a href=\"https://www.fool.com/retirement/2025/09/12/5-pros-and-5-cons-of-buying-second-retirement-home/\">Source Link</a>\n\n</div>\n","source":"fool_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>5 Pros and 5 Cons of Buying a Second Home in Retirement</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n5 Pros and 5 Cons of Buying a Second Home in Retirement\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-09-12 21:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/retirement/2025/09/12/5-pros-and-5-cons-of-buying-second-retirement-home/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>A second home gives you a place to go when you want to escape the real world.\n\n\n\n\n\n\n\nIt can also be a source of rental income and extra home equity when needed.\n\n\n\n\n\n\n\nMaintenance and upkeep costs ...</p>\n\n<a href=\"https://www.fool.com/retirement/2025/09/12/5-pros-and-5-cons-of-buying-second-retirement-home/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4211","symbol_name":"区域性银行","start_time":0,"source_url":"https://www.fool.com/retirement/2025/09/12/5-pros-and-5-cons-of-buying-second-retirement-home/","article_id":"2566972552","we_media_id":null,"thumbnails":["https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F832451%2F2nd-home.jpg&op=resize&w=165&h=104"],"rights":{"source":"fool_stock","url":"https://www.fool.com/retirement/2025/09/12/5-pros-and-5-cons-of-buying-second-retirement-home/","rn_cache_url":null,"customStyle":"","selectors":".main-contain, #article-page","filters":"#sticky-wrapper, .navigation, .article-page-end, .foot, .author-tagline, .author-inline, .footer, .soc-share, .wysiwyg, .related-content","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2566972552","pubTimestamp":1757683800,"columns":[],"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"If you're serious about shopping for a second home, make it a point to weigh the advantages and disadvantages, so your dreams don't turn into a nightmare.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4211":"区域性银行","BK4023":"应用软件","BK4195":"互助储蓄与抵押信贷金融服务","HBCP":"Home Bancorp Inc","PRO":"Pros Holdings Inc"},"translate_title":"退休后购买第二套住房的5个优点和5个缺点","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"HBCP":1,"PRO":1},"content_text":"A second home gives you a place to go when you want to escape the real world.\n\n\n\n\n\n\n\nIt can also be a source of rental income and extra home equity when needed.\n\n\n\n\n\n\n\nMaintenance and upkeep costs will be ever-present -- just as in your first home.\n\nWhether you want a lakeside cabin a few hours from home or dream of retiring abroad, you may have begun considering whether buying a second home is right for you.As with any financial decision, it pays to consider both the pros and cons, even if you can easily picture yourself sipping drinks from your vacation-home veranda.Image source: Getty Images.ProsThe idea of a second home can be intoxicating, and getting lost in how great it could be is easy. Advantages of a second home include:1. A private retreatLet's say you've done (nearly) everything right. You've spent decades working hard, built a nice retirement account, and maximized your Social Security benefits. Now that retirement is near, you want an escape, a place you can go and shut out the rest of the world. You dream of a private oasis that allows you to renew and refresh before facing the \"real world\" again.2. A potential investment opportunityIf a second home is in a desirable location, it may appreciate in value over time. If it does, you'll have greater equity to draw from if you ever run into expensive healthcare issues or need funds to finance upgrades and repairs. A second home can become an additional source of equity when you need it most.3. A potential rental propertyWhenever there's a serious discussion about passive income in retirement, the subject of rental property will surely come up. While there's nothing particularly \"passive\" about being a landlord, renting out your second home when you're not using it can generate additional income, helping to supplement retirement savings.4. Tax benefitsDepending on the specifics of your situation, a second home may offer tax advantages, such as deductions on mortgage interest or property taxes. If there was ever a time to double down on financial planning (hopefully, with the help of a professional), it's before plunking down money here. Before signing on the dotted line, you want to be sure that a second home provides financial advantages.5. Personal flexibilityHaving a second home to escape to opens up all kinds of possibilities. For example, if you're an avid skier living in Arizona, you can purchase a home near ski areas in a cooler climate. On the other hand, if you love your neighbors in Michigan but aren't sure you can stand one more freezing winter, you can buy a home in New Mexico or another warm spot. A second home allows you to get away to a place you want to be, and to do it on your own schedule.ConsNo matter how enthusiastic you are about buying a second home, weigh any cons that may pop up. For example:1. Financial commitmentA second home comes with additional expenses, including property taxes, insurance, maintenance, utilities, and mortgage payments if you take out a mortgage. Also, being unable to quickly reach that home if there's an electrical fire or flooding in the basement could cause undue stress.2. Limited useWhether you spend a few weeks or several months at the second home each year, you still pay for the property as though you're there full-time. There's no break on property taxes, homeowner association (HOA) fees, or basic upkeep costs just because you're away. Furthermore, you may need to hire a property manager to look in on the property when you can't, and inform you if anything needs your immediate attention.3. Market risksIt's easy to be lulled into the belief that real estate values can only increase, and that purchasing a property is a rock-solid investment. While it's true that most real estate has slowly increased in value over time, the soaring prices that began early in the pandemic might make it appear as though there's no end in sight. But any money you put into a second home -- including a down payment, monthly payments, taxes, fees, and ongoing expenses -- can be lost if the housing market tanks.4. Unexpected expensesLet's say you move to an oceanside town in a state you love. The people are great, the food is delicious, and the weather could not be more perfect. However, the region is prone to hurricanes, tornadoes, floods, wildfires, or other natural disasters. With more insurance companies pulling out of high-risk areas, you may find that your homeowners insurance is dramatically higher than expected. Along the same lines, if you purchase a home in an area covered by an HOA, you could experience an HOA fee increase following a natural disaster, even if your home was not directly impacted.5. A more expensive mortgageIf you borrow any portion of the purchase price to finance a second home, you'll find that your interest rate is higher than the rate on a primary residence. That's because lenders consider second homes riskier, and seek to protect their investment by charging a higher rate. You'll need to put down at least 10%, but you may be asked for a down payment of 20% or more, especially if you have a lower credit score or smaller cash reserves.Nearly everything in life has positive and negative aspects. Your goal is to determine whether there are enough positives associated with a second home to make you glad you followed your dream.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}