Real Estate Investments: Owning a Second Home
There has never been a better time to purchase a second home. Many people may not know that 36% of the homes sold last year were second home purchases. This is partially due to a boom in the investment and vacation home market. People have realized that real estate is the place to look for secure and profitable investments. Investors are getting smarter as the business of making money has become more complicated and ridden with pitfalls. Traditional markets like the stock market are fluctuating madly and are difficult to interpret even by professionals. The one market that has shown steady growth and expansion is real estate.
Today’s investment theme is diversity and real estate is a great place to start. With numerous growth markets around the country and the allure of many of America’s destination cities the reality of purchasing additional real estate is that it is a safe and profitable venture. Now, when thinking about a second home purchase the first thing you should consider is whether you are buying for personal use (vacation home) or for an investment or revenue property. If you are buying for a vacation home, have you considered the revenue possibilities? A vacation home will likely sit un-used for much of the year. If you only use the home for 2 or 3 months, why not consider renting it for the other months? A weekly vacation rental can bring in a nice sum of money and help the home to pay for itself. And, the home will still be available to you whenever you want to use it.
Investment properties can rake in a great profit if planned correctly. Long-term monthly rentals are great for paying off the mortgage on a property. The bonus being that you are growing your equity the whole time. Of course, as your equity grows so does your ability to purchase additional properties. Simply put, there are few areas of investment that can offer the benefits of real estate. It is a market that is stable and growing and shows very few signs of slowing down in the near future. With the growing need for quality rentals and weekly vacation rentals, this is a market that is just waiting to be tapped.
CJ de Heer is a certified REALTOR;® specializing in the Santa Cruz real estate market. For access to some of the most stunning coastal properties check out www.cjdeheer.com.