For many, wanderlust 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.
Vacations are part of that wanderlust; the chance to get away someplace
beautiful. And then you see it. The local newspaper at your vacation
destination, and lo and behold, there is a real estate section right
there.
Dare you even look? You can't afford it, can you? Two homes? Is dual
home ownership for you?A second home can work for you, but you have to
go into the process knowing what to expect. 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 a second home in your destination of
choice going to cost you a pretty penny, it's no longer a well-kept
secret anymore and the chances of you flipping it to make a quick buck
are slim.
The best piece of advice a possible vacation home buyer 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 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
that are looking to sell will be doing so at lower prices. Now could be
a great time to buy a place that you're 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) or exciting (if that's what you go on vacation to experience). 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've spent
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 find yourself on a permanent vacation.
