A 2nd Home: Take it or Leave it?
For many, wanderlust is just a part of life. You buy a beautiful home someplace, settle down, have a family, but there is always a part of you that is itching to get absent. Holidays are part of that wanderlust the chance to get absent someplace beautiful. And then you see it. The local newspaper at your vacation location, and lo and behold, there is a real estate section right there. Dare you even look? You can not manage it, can you? Two homes? Is twin home ownership for you?
A 2nd home can work for you, but you have to go into the process knowing what to expect. If you are looking to get rich quick, don’t count on it. In accordance to recent information, the price of real estate in areas that are considered “Vacation Markets” has risen 2 times as fast as real estate in other areas. So, not only is a 2nd home in your location of choice likely to cost you a pretty penny, it is no longer a well-held secret any more and the chances of you flipping it to make a quick buck are slim.
The best piece of advice a possible vacation home customer 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 flip a revenue in a vacation market is near to impossible. But there is a bright facet to all of this. With the housing bubble likely poof all across the country, those that are looking to sell will be doing so at decrease prices. Now could be a great time to buy a place that you are 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 have decided on a area, spend some time there to make sure you like it. If it is likely to be a vacation home, you will want the landscapes to be relaxing (if that is what you are looking for) or exciting (if that is what you go on vacation to experience). A last check should be the bottom-line cost. If the price of the two properties makes up more than one 3rd of your complete income, you have spent also much.
Buying house is a huge expense for everyone, even the rich. Take the time to properly evaluate the pros and cons before you decide to own a 2nd home or you could find yourself on a permanent vacation.