Margin of Safety » Second Homes http://amarginofsafety.com "...to distill the secret of sound investment into three words..." Fri, 26 Jun 2020 18:44:00 +0000 en hourly 1 http://wordpress.org/?v=3.2 Bloomberg Article on the Myopia of Buying a Vacation Home http://amarginofsafety.com/2014/08/17/bloomberg-article-on-the-shortsightedness-of-buying-a-vacation-home/?utm_source=rss&utm_medium=rss&utm_campaign=bloomberg-article-on-the-shortsightedness-of-buying-a-vacation-home http://amarginofsafety.com/2014/08/17/bloomberg-article-on-the-shortsightedness-of-buying-a-vacation-home/#comments Sun, 17 Aug 2014 18:37:34 +0000 Ray Galkowski, CFA http://amarginofsafety.com/?p=1790 Continue reading →]]> When viewing a vacation home as an investment, most fail to account for all of the costs associated with home ownership. Even after the investment is sold, people overestimate their return because they fail to track all of the costs.

In most cases, residential investments deliver net returns equal to the rate of inflation, at best, and that does not factor in the amount of time the homeowner spends dealing with problems, brokers, and tenants, nor all of the aggravation.

http://www.bloomberg.com/news/2014-08-13/bought-a-new-vacation-home-i-m-so-sorry-.html

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