A Second Home: Take it or Leave it?
For many, wanderlust is just a part of life. You buy a beautiful home somewhere, settle down, have a family, but there is always a part of you that’s itching to get away. Vacations are part of that wanderlust the chance to get away someplace beautiful. And then you see it. The local newspaper at your vacation destination, and lo and behold, there is a real estate section right there. Dare you even look? You cannot afford it, can you? Two homes? Is dual home ownership for you?
A second home can work for you, but you have to go into the process knowing what to expect. If you’re looking to get rich quick, don’t count on it. According to recent data, the price of real estate in areas that are deemed “Vacation Markets” has risen two times as fast as real estate in other areas. So, not only is a second home in your destination of choice heading to cost you a pretty penny, it’s no longer a well-stored secret any longer and the chances of you flipping it to make a quick buck are slim.
The best piece of advice a possible vacation home purchaser can heed right now is to buy for love not for money. Recent sharp downturns in vacation markets like Naples, Florida, Lake Tahoe, Nevada and Cape Cod, Massachusetts, have shown that trying to turn a profit in a vacation market is shut to impossible. But there is a bright aspect to all of this. With the housing bubble heading poof all across the country, those that are looking to sell will be doing so at lower prices. Now could be a great time to buy a place that you’re planning on keeping for a long while.
But how do you know if you have your head on straight about the whole thing? Well, take some time and evaluate the pluses and minuses of buying another home. Once you’ve decided on a area, spend some time there to make sure you like it. If it’s heading to be a vacation home, you’ll want the surroundings to be relaxing (if that’s what you’re looking for) or exciting (if that’s what you go on vacation to experience). A final check should be the bottom-line cost. If the price of the two homes makes up more than one third of your total income, you’ve spent as well much.
Buying property is a huge investment for everyone, even the rich. Take the time to properly evaluate the pros and cons before you decide to own a second home or you could find yourself on a permanent vacation.