For many of us, the desire to travel 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. The dream of going on vacation causes us to get itchy feet, to take a chance to get away someplace beautiful. And once you are there, you see the local newspaper, and lo and behold, there is a real estate section just waiting steal your attention. Dare you even look? Down deep you are wondering if you can afford two mortgages, but even deeper is the desire to have a place you can slip off to when the pressure is on. But, should you really be looking at buying as an investment?
Having a second home might work for you, but you have to go into the process knowing all the facts। 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 twice as fast as real estate in other areas. So, not only is your dream home going to cost you a pretty penny, it’s unlikely that you will be able to flip it to make a quick buck.
So before you jump into a 2nd mortgage you must first determine what is motivating your decision. Is it love or 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 close to impossible। But there is a bright side to all of this. With the housing bubble going poof all across the country, those interested in selling their properties will be doing so at lower prices. So, maybe now could be the best time to buy nice little get-a-way if 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’ve decided on a area, spend some time there to make sure you like it. If it’s going to be a vacation home, you’ll want the scenery to be relaxing, if that’s what you’re looking for. If you want excitement, the area must include that too. A final check should be the bottom-line cost. If the price of the two houses makes up more than one third of your total income, you’re going to be spending too 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 possibly find yourself losing both homes.
