I spent the holiday weekend out at the beaches of Long Island, an area known for lovely summer homes and wealth. As we drove around the area, I noticed two things were different that past years: 1) there was a lot less traffic going out there- despite the great weather and 2) there was a for sale sign on 80% of the houses.

I would think that would such sunny skies and extra days, it would be jammed but no. I started to investigate and not only is the sale market very bad, but the rental market is terrible. The restaurants were full but easy to get into, the stores and streets had more browsers than buyers and it was an overall quiet scene.  Apparently, not only are weekenders trying to dump their homes because they can’t rent them, but are choosing to not even go out and enjoy them. The second home market is really in bad shape and remains a luxury- quite unaffordable to most right now.

Here are five things to think about when considering a second home:

1.    If you need to rent it out to simply cover the monthly nut, don’t count on it. A bad rental season can deplete your savings account and that is a luxury you cannot afford in this economy.

2.    If you do not have at least 12 months housing expense for both your primary and second home in reserves, you can’t afford a second home.

3.    If you are planning on buying the home to retire in and renting it out full time until you do so, don’t count on an annual tenant to be consistent in a second home market.

4.    If you have been a renter in an area for years and think you might want to buy there, think again. Renting is fun, but non committal whereas owning is an obligation that might not be so much fun.

5.    If the town you are looking in is comprised of a greater % of weekenders, then there will be a lot of competition to sell or rent- if that is your plan.

I speak from experience, in that a second home is more work and expense than one would think. Like everything else, it becomes just another thing to take care of so you have to be of that type. After renting a home at the beach, I loved it so much that I bought one. Four years of calling the landscaper, Pool Company, plumber and roofer and I had had it! So, one more reason you should not buy a second home? If you hate taking care of your weekday house and find everything a chore- consider having to get all that accomplished in two days!