There are Black Friday deals to be had across the country. Why not buy a Phoenix home? Sound outrageous? Well, it's actually quite a good deal. While interest rates are low and home prices competitive, it's not a bad idea to buy that vacation home you may have been eyeing.
Seventy-nine percent of vacation-home buyers said that they planned to use the home as a vacation or family retreat, while 34 percent said the reason for buying was to diversify their investment. Twenty-eight percent said they planned on using the home as a primary residence, most likely a retirement home, in the future. And 18 percent of buyers planned on renting out their homes.
But what do you need to consider when buying a vacation home? Here are a few things to think about before taking the plunge.
Can I afford a vacation home?
Clearly, this is the number one question that you will need to answer. Much of it depends on if you are already spending a certain amount of money vacationing on an annual basis and if that amount would cover some of the fixed costs of owning a second home.
When estimating the costs, remember to include all of the regular monthly bills as well as travel costs and home insurance. These are items that many people forget about when going through the decision process of whether to buy a vacation property.
Consider future plans
Will the home be used later as a primary residence (such as your retirement home)? If so, purchasing a second home now may be in your best interest. You can buy your retirement home while interest rates are low and home prices remain competitive. Then you can sell your current primary residence once the market has fully recovered.
Whatever your future plans may be, it's important to examine your long-term goals since real estate remains a good long-term investment.
Read more about "This Black Friday, consider buying a Phoenix home," at MyPhoenixmls.com
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