Kevin McCormally: I am Kevin McCormally of Kiplinger's. I am here with Pat Esswein, the Housing Editor of Kiplinger's Personal Finance magazine to talk about vacation homes. Pat, we know that the general housing market is slowing in a lot of parts of the country, is the same thing happening with second homes or vacation homes?
Pat Esswein: In some markets it is, largely because of rising interest rates which effects affordability. Investors who bought over the past several years, who were flipping out of their properties and then an over supply of new product coming on to the market.
Kevin McCormally: So if this intrigues me as a vacation home buyer, what do I need to think about before I buy a vacation home?
Pat Esswein: Well, the first thing you need to think about is how frequently you expect to use this place and then you need to look at accessibility, how easy will it be for you to get there, what's traffic like getting in and out on the weekend or where is the closest airport.
Kevin McCormally: Okay, what else? What about the size of the houses, is that an important consideration?
Pat Esswein: Absolutely, if this is just going to be a small retreat for you and someone else, you don't need a ten bedroom beach house. But if you expect to invite friends and family and accommodate them, then you may want a larger property.
Kevin McCormally: And let's say that I am thinking about buying the second home now, as a place I want to retire to in the future, are there different considerations there ?
Pat Esswein: You want to make sure that you can use this place as a primary residence in the future, probably a rested cabin, miles from anywhere with plan that cannot be developed is not going to be suitable for you.
Kevin McCormally: Okay, lots of things to think about. Thanks Pat.
