Do Vacation Homes Make Smart Investments?
Do vacation homes make
smart investments? It depends on who you ask. Maximum Exposure Real Estate opines, “Buying a vacation home is
great for a number of reasons. Not only does it serve as a great place to spend
time away from the world, but it also works as an excellent investment for you
Noted financial advisor Dave Ramsey said, “The idea of owning a second home is tempting. You can buy it near your favorite vacation spot or in your own city. But the truth is, for a lot of people, the purchase of a second home is a bad idea. Real estate is riskier than most people realize—and it’s not just about the money you tie up in your property.
Do Vacation Homes Make Smart Investments? The Pros and Cons
- A great place to spend time away from the
world. Returning to the same place
time and after time can be comforting as you become familiar and comfortable
with the location. It allows you the freedom to be yourself and the opportunity
to expand long-term friendships with residents – you can become part of the
excellent investment for you. While all assets fluctuate in value in the short
term, vacation properties are more likely to retain their value and appreciate
because they are located in popular areas with a geographically limited supply.
decide to rent your home, but personally use the property as well, you’ll need
to determine whether you’re eligible to deduct operating expenses. To resolve
this issue, add up the days you rented the property. If you occupied the
property fewer than 10% of the days, you rented it or for less than two weeks –
whichever is greater – you can deduct all of the operating expenses of the home,
including interest, utilities, cleaning fees, lawn maintenance, and management
the money Most people simply aren’t in a position financially to buy
a second home. According to the Census Bureau, two-thirds of today’s homeowners
have a mortgage on their current homes. Jumping the gun and purchasing another
property before your primary residence is paid off simply doubles your
risk—even if you plan to rent it out when you’re not using it.
time and hassle How much
time do you spend on the upkeep of your home? While a second home may not
double that time, it can mean many more hours and headaches than you think. Dave Ramsey said, “If this is a vacation home that will remain
unoccupied most of the time, just imagine the damage a burst water pipe could
cause if it goes undiscovered for weeks.
Your vacation spot is also an easy target for
vandalism and burglaryYou’ll need a top-notch security system
and insurance designed to cover damages that are more common in vacation homes.
going to the mountains again?If you are
paying a significant amount of money each month for a second home, you may feel
that you need to regularly and exclusively visit the property to justify your
investment. How much time do you have for vacations? Do you want to go every
year to the same place?
vulnerable to the economy Before the last recession, Canadians and U.S.
citizens purchased second homes in Mexico. They may have used their home equity
to do so. When the recession hit, they
were forced to sell their homes In Mexico at bargain-basement prices to prop up
their finances in their home country.
Properties, Inc. is
here to help homeowners out of any distressed situation.
investors, we are in business to make a modest profit on any deal. However, we
can help homeowners out of just about any situation, no matter what!
There are no fees, upfront costs, commissions, or anything else.
We offer the simple truth about your home and how we can help you sell it
us a ring. We would love to help you understand the process and to answer all
of your questions. You can reach us at 402 999.0577
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