Learn the difference between buying a second home, a vacation home, and an investment home in as we explore your options in Sarasota.


Whether you’ve been visiting Sarasota for years as a vacation destination or you’re ready to begin investing with a second home, it’s important to know the difference between a second home, a vacation home, and an investment home. Let’s take a closer look!

πŸ€·β€β™€οΈ Does it really make a difference?

When it comes to setting long-term goals and securing a mortgage loan, it definitely makes a difference in the wording you use when referring to your new second property purchase. The three terms may seem the same, but they are different when it comes to how they are categorized by mortgage lenders.

Second Home Vacation Investment

🏘️ What is a Second Home?

A second home is in a different city, neighborhood, or zip code than your primary residence. The property can be a single-family home or a condominium and must be owned by an individual and not a corporation. The owner of the home should live there for a portion of the year and it is not subject to timesharing of ownership.

A second home can be underwritten as if a primary residence, but with the addition of the mortgage on your primary residence and the second home mortgage, insurance, taxes, and HOA or condo fees. Consider this when calculating your debt to income ratio for loan purposes.
Sarasota Second Home Concept - Couple in Kitchen Drinking Coffee

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πŸ–οΈ What is a Vacation Home?

A vacation home may be a timeshare, condominium, or single-family home that is owned and placed into a rental pool within a resort location. The frequency of renting may be 30-days or less and is considered transient housing in the state of Florida.

When purchasing a vacation property, keep in mind that the use of the property as a rental home may not be permitted by the neighborhood’s HOA or condominium association. Be sure to read all documents thoroughly and ask questions about regulations.
Sarasota Vacation Home Concept - Couple Sitting by Pool

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πŸ’΅ What is an Investment Home?

An investment home is purchased with the sole intent to rent or lease the property with an annual or short term agreement. These properties can be individually owned, but they are usually owned by a corporation, partnership, or LLC.

The property may be purchased with IRA funds, via 1031 exchange, or with personal funds with the intention of making a profit from the leasing of the home. An investment home is not lived in by the owner.
Sarasota Investment Home Concept - Couple Sitting at Table

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🏠 Buying a Second Home

Now that we know the difference between the three terms, let’s dive a bit deeper into buying a second home in Sarasota. Whether you’re looking for a true second home that you plan to live in part of the year or you want to begin investing, here are some tips to help along the way!

πŸ—ΊοΈ Local Real Estate Agent

If you’re thinking of buying a second home in Sarasota but you live outside of the area, we understand that it can be a challenge when navigating a different real estate market.

We can help!
Give Brock Realty a call today at 941-313-1234 to learn more about the ins and outs of buying a second home in Sarasota. We’ll be with you every step of the way and look forward to welcoming you to the area!

πŸ“‹ Needs & Goals Checklist

Begin by creating a checklist of your expectations when it comes to owning a second home. Do you plan to use it as a weekend retreat or is this the place where you hope to live fulltime once you retire?

If you plan to bring friends and family along on occasion, consider the number of bedrooms and the size of the home desired. If living near the water is important or you prefer little maintenance, the location and type of home make a difference.

πŸ’Έ Expenses & Tax Benefits

We’re thrilled that you’re thinking of buying a second home in Sarasota! Be sure to calculate expenses along with your mortgage to include insurance and maintenance. It’s a good idea to have someone looking after the property while you’re not in the area.

Using the property as a vacation home that is rented to others could be beneficial when it comes to taxes depending on the number of days you rent the property each year. Check with your tax advisor before buying a second home if this is one of your expectations.
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Buying a Second Home in Sarasota
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Buying a Second Home in Sarasota
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Learn the difference between buying a second home, a vacation home, and an investment home in as we explore your options in Sarasota.
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Brock Realty Inc
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