Falling prices present a real opportunity this spring for many consumers wanting to find the perfect vacation property. Overall, median home prices fell 7.7% in 2007, according to the S&P/Case-Shiller index. Those in markets with a strong vacation home component such as Las Vegas and Sarasota were down more than most.

Real estate experts tell us that the market is soft. And mortgage rates are down to 2004 levels. Even better. Is it time to buy? Maybe. There may be more economic and psychological questions that come with a second home than with a primary one.

For piece of mind, and for a boost to your future net worth, always do a rough cash-flow comparison. Look at how much it’s going to cost to pay off the mortgage and pay for taxes and maintenance vs. the cost of renting. If you’re not planning on being in your house for at least seven to 10 years, you probably won’t recoup your investment. You may be better off renting.

click here for article

search for : second home, pay off the mortgage