Down market location for Investing on Second Home
No Comments Sub Category:Real estate trends,Realty News Posted On: Oct 27, 2011
Waiting for the right time to buy your dream home may not always be the brightest idea market figures say this very promptly. There are times when the real estate market dips low and is considered to be the right time to buy that second home that has been on your mind for a long time but, be alertive! Don’t end up chewing more than what you can eat by taking huge loans that will make you end up cutting essential corners just to pay back interest and land you into a mid-life crisis. Also remember, this might make you compromise on your family’s lifestyle by decreasing your expenses due to huge loans. Instead, invest in a down market location. This is a new concept that is slowly catching up with every second home investor. The idea is simple, buying a second home in a down-market location is a wise investment. It can always be sold off for a worth price later on, when the prices are higher than the buying price and can be kept aside as an asset and as we all know, an asset comes in handy for all those tough times.
Investing in vacation homes:
Investing on a vacation home is a sensible option for a second home. It gives you a seasonal time to get away from the monotony of your house and it’s also situated at let’s say, a hill station which may cost you much lesser than your first home. The National Association of Realtors’ (NAR) annual Investment and Vacation Home Buyers Survey found that eight in ten second-home buyers consider it a good kind of investment to be trustily invested in, compared with 59 percent of primary-residence buyers. Forty-four percent of vacation home buyers said they were likely to purchase another property within two years. Many are aiming for properties in the city outskirts which are easy on the pocket and are potential hotbeds for a sharp rise in rates and demand. Here are few things listed for you to keep in mind before taking the plunge:
- If you have already opted for a loan on your first home, think about your reasons for the second home.
- Is your reason justified and valid? Talk to a real estate or an investment advisor.
- Do not opt for a loan on your second home as well.
- Check the future prospects of the property you are planning to invest in.
- Check for safe and friendly surroundings.
- Easily accessible by roadways.
- Learn about the present real estate economy.
- Do your research and homework before you opt for any property.
- Check for genuine papers and land documents.
- Check if there is any land mafia involvement and rule it out.
- Avoid any legal muck.
- Be patient and don’t jump on every opportunity.
If the prices are slowly decreasing, don’t wait around for it to go lower and be greedy. Instead, buy at the right moment. You can never predict how the market changes.
Investing on a second home must be done with a patient and calm head. Rushing through it would make for a hasty decision which would be regretted later on. Think about your reasons, weigh them down and discuss with your family before making a final decision. Happy investing!
Tags:
Down market location, Dream home, Home loans, Huge loans, Investment, Land documents, Primary-residence buyers, Real estate economy, Real-estate market, Vacation homes
