Do we need that recreational property?

Some might have a second property for recreational purpose. It might be a cottage in a lovely small town closer to the nature where you visit in the weekends during the summer.

It might bring challenge if they are still paying mortgage for both their primary residence and that second property. Or they have paid off the second one, but they still have to pay monthly maintenance fee for the second one plus the mortgage of the primary residence.

At the same time, they try to save for retirement. Their overall equity is quite low or even negative. In this case, it might be advisable to sell that recreational property which is not a need rather than a want because there are many priorities such as mortgage and retirement that demands their resource and focus.

It is a bit hard to sell a property now given such high interest rates. The housing market did cool down quite a bit now. However, some still manage to get it done. Hope they can sell it at a reasonable price without taking a hit.

It does require careful financial planning when buying a property regardless of whether it is the first or second or third. It is a huge financial commitment and needs to be put into the grand scheme of one’s overall and long-term financial roadmap.

Published by Worthfy

Financial literacy and counselling

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