Tue 14 Mar 2006
Are Second Homes a Good Investment?
Posted by Marlow Harris under Real Estate
[2] Comments
Is it wise to buy a second vacation home? According to The Real Estate Bloggers, a second home is not always a good investment. But some people, making an emotional decision rather than perhaps an investment-driven choice, own three homes. According to this article in the Seattle Times, a confluence of demographic and economic factors makes owning two homes verging on the commonplace, and some people own more.
Does it make sense? Jeff Brown of the Sun Herald has done some numbers that make it less appealing and shows a negative profit under many circumstances.
But it does work for some, especially if the house is rented out occasionally or during the off-season. Rentals can cover your second-home costs if you’re careful when you buy and you follow these 3 simple rules.
Ten tips for happy second-home owners
Top ten places to buy a second home
March 16th, 2006 at 8:54 am
It’s hard to make a good decision when you don’t know the area. I’ve seen a lot of buyers get burned buying in an undesirable area that’s going down in value, or buying a vacation property that’s too hard to get to. The best place to buy is within a two-hour drive of your house.
March 19th, 2006 at 12:53 am
Some really good points here. I am a real estate agent in Leavenworth (not on the top 10 list, but fits all the criteria)and work with buyers of second homes all the time.
A few thoughts: First. Take the time to decide how you plan to use your home. Do you need a large yard if you aren’t going to be there to take care of it? Do you need a two (or three) car garage like at home? Will a condo work as well as a house.
Second. Find a real estate agent who is familiar with the area. The agent who helped you buy your current home probably is an expert in that neighborhood, but not a small town 2 hours away.