how much of your net worth should you spend on a vacation home 
financial advisers may suggest no more than 10 to 15 of one s net worth should be tied to a vacation property another aspect to consider is ongoing stable income make sure any vacation property investment expenses can be covered by monthly cash inflows whether via income government benefits or retirement savings can i live in a vacation home year round in the eyes of the irs a vacation home is one where you ve lived in the property for part of the year though you can logistically chose to live whereever for personal reasons there are different tax implications for different real estate properties based on various rules including how long you reside in the property and whether you have exclusive control over the property the bottom linea vacation home may be a relaxing getaway to enjoy a change of scenery it may also be a financial investment to generate rental income it may also end up being a financial burden with ongoing operating expenses and unstable revenue as you consider a vacation home consider how the irs defines a vacation home what the ongoing cost of ownership will be and how often you truly expect to visit your additional property 