How much should you spend on a vacation home?

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Christ Price asked a question: How much should you spend on a vacation home?
Asked By: Christ Price
Date created: Tue, Apr 13, 2021 5:53 AM
Date updated: Wed, Jun 29, 2022 2:11 AM

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Top best answers to the question «How much should you spend on a vacation home»

In order to never have your vacation property feel like a burden, heres my vacation property buying rule: spend no more than 10% – 20% of your net worth on a vacation property purchase price (not downpayment). For example, if you net worth is $3 million, spend no more than $300,000 – $600,000 on a vacation property.

  • - Florida $ 1,534 annually or $127 per month - Georgia $ 724 annually or $60 per month - North Carolina $ 674 annually or $56 per month - South Carolina $ 618 annually or $51 per month - Tennessee $ 723 annually or $60 per month

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“It’s best to budget throughout the year and save a monthly amount to be used on travel.” For example, setting aside $300 a month in a travel savings account will pay for a nice $3,600 vacation...

How Much Does the Average Person Spend on a Vacation? An estimate of what the average person spends on vacation is approximately $205-$305 per day plus transportation costs. This is based on spending $150-$250 a night on your accommodations and $60 a day on meals.

If payments for your primary residence total $1,500 each month, this means that you can afford to pay $1,500 per month for a vacation home.

A general rule of thumb is to set aside 1–2% of your home’s purchase price for maintenance and repairs. So, if your second home is valued at $200,000, you’ll need to set aside $2,000–4,000 each year for upkeep.

Within the U.S., the average hotel room costs $141 per night, ValuePenguin said. They don't have data for international accommodations, but note that as a percentage of your total vacation spend ...

On the BogleHeads forum, numbers were all over the place. There were people who spent $1000 a year for four people, and others who spent $35,000 for two on one vacation. $10,000 per year for two people was mentioned often.

Fiaher believes the numbers are pretty accurate. “Our latest ‘State of Home Spending’ report has average [annual] upkeep spending at $3,192, roughly 1% of the median home value in the U.S., which is a little over $300,000.” 1. The 1% rule is not a perfect measure for everyone.

For example, a $500,000 home in San Francisco, taxed at a rate of 1.159%, translates to a payment of $5,795 annually. It’s important to consider taxes when deciding how much house you can afford. When you buy a home, you will typically have to pay some property tax back to the seller, as part of closing costs.

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