Depending on where you live in the country, February can be the perfect month to get-away. While a few years ago, a second vacation home might have been out of the question, with the improving economy, another home might be within reach. But is it a good investment?
usnews.com says many don’t view a second home as an investment or a vacation alternative but rather as a luxury item. It’s actually cheaper to stay in hotels than it is to keep up a home. But if you can afford it, owning a second home is definitely worth the investment.
The National Association of Realtors shows vacation home sales figures for 2014 at the highest level since 2006. This same group shows the median vacation home sold for $150,000 to a buyer with $94,380 in annual household income.
If you plan to use a second home as a vacation home, there are advantages such as leaving clothes and toys behind — not having to pack those items. You can definitely travel a lot lighter not to mention using the home whenever you want — no running the risk of hotels being booked up.
The downside to owning a second home? It can be a financial burden. Whether you pay cash or have a mortgage, you’re still having to pay property taxes, insurance, and maybe even a Homeowners Association Fee. While investing in a second home for retirement may sound like a good idea, be careful. You may not be able to access the equity quickly enough.
Advice? Talk it over with a real estate agent. One vacation spot can be different from others. So secondly, do your research on price trends, access to interstates and other amenities like beaches or ski slopes. Not a bad idea to talk with other property owners in the neighborhood, as well,
Many vacation home shoppers plan to rent out the property. However, since you don’t know how much you’ll earn or how many expenses you’ll be able to deduct, only buy a second property if you can afford it.
If you or anyone you know is interested Scottsdale Real Estate, please check out my website, www.Realestateforsaleinaz.com, and I’ll be happy to help.
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