There’s an old saying: the best days of owning a boat are the day you get it, and the day you sell it. The sentiment is especially true when people borrow to buy recreational items. While usage of the lifestyle item is periodic, related expenses tend to be continuous.
Recreational properties and equipment saw a frenzy of buying during the first two years of the pandemic. Now, schedules are normalizing, money is tighter and reducing expenses is the new dream. As motivated sellers outnumber buyers, the available supply of nearly everything rises. For more, see: For Every Vacation Home Fantasy, There is a Harsh Financial Reality:
Sales of second homes are way down from last year’s boom, dipping below pre-pandemic levels (February 2020) for the first time in two years, due in part to high prices and rising mortgage rates, said Daryl Fairweather, chief economist at Redfin.
Many Americans [and Canadians] still envision a second home as a source of family memories, wealth, rental income and tax benefits, if everything goes to plan. These buyers don’t always grasp the risks such as trouble renting the home, family squabbles over the property and unexpected costs.
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