Here’s what to know if you’re considering buying a second property.
Is it time for you to consider a vacation home, investment property, or both? The pandemic and very low interest rates have contributed to the desire for second homes and investment properties. The benefits of vacation homes became apparent to many who needed a change during the health crisis; people gravitated to warmer climates, mountain cabins, and even city condos with easy walkability to other areas.
You may want to consider buying a vacation home and using it as a rental property part-time.
If you’re considering buying another house, think about your current lifestyle. Are you looking for something different or just a property in a different area? You should also consider your budget and what you like to do and how those things match up with your possible plans. You may want to consider buying a vacation home and using it as a rental property part-time—just be sure to check with the homeowners association to learn what the rules and restrictions are. Also, speak with your financial advisor to ensure your plans are good for your portfolio.
In 2020, the median price range for seasonal homes increased by 21%, so it’s now $420,000, and prices are still rising. Finance consultant Dave Ramsey recently stated that he believes housing prices will continue upward, and we’re not in a housing bubble. He thinks that if you hesitate now, you may end up paying much more in the future for the same property.
The No. 1 second-home market is Florida, and I’m now licensed in that state, so I can help if you decide to look further south. Remember that owning an investment property helps create more wealth. When looking for a rental property, be sure to assess the condition, price point, how much it would likely rent for, and how much ongoing maintenance may cost.
Don’t wait for the market to turn because it may not. It’s currently a wonderful real estate market to be in, for both buyers and sellers.
We’d be happy to help guide you through the process of buying a vacation or investment property. Just let us know via phone or email. We would love to help you.
