Well just like the real estate market in your local area prices have gone down in a lot of tourist areas as well.

We just took a vacation trip to the Outer Banks of North Carolina and of course we looked at real estate while on vacation.

Here is just a quick example of what we found: 

3 Bed 2 Full Bath on the sound/bay asking $199,000

4 Bed 2 Full Bath on the sound/bay asking $199,900

4 Bed 3 Full Bath 6 lots from beach asking $329,000

2 Bed 2 Bath 2 lots from beach asking $189,000

 

Financially taking on a 2nd mortgage can be a little daunting but there are some advantages to consider when thinking about buying a vacation get away.

First is will you be able to rent the property?  The idea your rental income will cover your mortgage is far fetched unless you pay cash or put a large portion down (60%-70% of purchase price).  But the rental income should cover your HOA dues, taxes, required maintenance and some upgrades to the home. 

 

Second, you are going to go on vacation somewhere with family or friends so think about that cost and deduct the amount off your total cost.

 

Third, think long term.... If you buy in the next 2-3 years and hold the property for 7 years or longer things should go back up and you could sell the home for a profit or a worst pay for your past vacations and return your original investment.  

 

My advice is to throw a number you are comfortable with at any house you like and see what bits.  You never know you might just catch a great deal!